White Leo Motors (WLM)Inc

question 3

Multiple Choice

White Leo Motors (WLM) Inc.generates a major portion of its revenues by manufacturing luxury sports cars.However, the company also derives an insignificant percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name.Which of the following terms best describes WLM?

• A) A conglomerate
• B) A subsidiary
• C) A dominant-business firm
• D) A single-business firm

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Definitions:

Industrial Regulation

Government rules or laws designed to control business practices, market conditions, and protect consumers within specific industries.

State And Local Governments

The regional and municipal levels of government within a country, responsible for local decision making and public services.

Social Regulation

Rules imposed by government to correct market failures and promote social welfare, often relating to health, safety, and the environment.

Decreases Product Innovation

A situation where there is a decline in the introduction of new products or improvements to existing ones, often due to market conditions or external constraints.