The US Securities and Exchange Commission Has Designated Just Nine Credit-Rating

question 38

Multiple Choice

The U.S. Securities and Exchange Commission has designated just nine credit-rating agencies as nationally recognized statistical rating organizations, which include Moody's, Standard & Poor's, and Fitch Ratings. These agencies provide opinions on the creditworthiness of other entities and the financial obligations issued by them. Because so few companies can compete in it, the credit-rating industry would be considered

• A)a mega monopoly.
• B)an oligopoly.
• C)a pure competition.
• D)a monopolistic competition.
• E)a monopoly.

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Definitions:

Solvency

The ability of a company to meet its long-term debts and financial obligations.

Average Inventory

The mean value of inventory a business has over a certain period of time, calculated to assess inventory turnover and management efficiency.

Beginning Inventory

The value of a company's inventory at the start of an accounting period before any purchases or sales have been made.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.