Earlier,the Travel Industry Was Controlled by a Few Large Travel

question 3

Multiple Choice

Earlier,the travel industry was controlled by a few large travel companies that booked holidays,air tickets,bus tickets,and hotels for their customers.However,with the emergence of the Internet,smaller travel agencies started mushrooming in the industry and customers started making their own reservations.Which of the following can be inferred from this information?

• A) The travel industry changed from a consolidated structure to a fragmented one.
• B) The pricing power of the incumbent firms in the travel industry has increased.
• C) The bargaining power of buyers in the travel industry has decreased.
• D) The structure of the travel industry changed from monopolistic competition to an oligopolistic one.

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Definitions:

Stock Splits

An initiative taken by a company to multiply its current shares into more shares to augment the ease of trading those shares.

Owner's Equity

Owner's equity represents the owner's claim on the assets of a business after all liabilities have been deducted, indicating the net value owned by the proprietor in the company.

Regular Dividends

Payments made by a corporation to its shareholders out of its profits on a recurring basis.

Flotation Costs

The total costs a company incurs to issue new securities, including underwriting fees, legal expenses, and registration fees.