Related Industries Create the Probability That New Companies Will Enter

question 104

Multiple Choice

Related industries create the probability that new companies will enter the market. This ________ competition and forces existing firms to improve ___________.

• A)decreases, innovation
• B)decreases, efficiency
• C)increases, efficiency
• D)increases, sales

---

Definitions:

Suspect

A person thought to possibly be involved in or responsible for a particular crime or wrongdoing.

Dividend Expense

An incorrect term, as dividends are distributions of earnings to shareholders and not an expense. Instead, consider "dividend payment."

Cash Dividends

Payments made out of a corporation's earnings to its shareholders, usually in the form of cash.

Stock Investments

Investments made by purchasing shares of companies in the hope of earning dividends or selling the shares at a higher price.