Which Statement Is True

question 22

Multiple Choice

Which statement is true?

• A)Collusion is most likely in industries with high concentration ratios.
• B)Collusion is most likely in industries with low concentration ratios.
• C)There is no relationship between the likelihood of collusion and the size of the concentration ratio.

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Definitions:

Inventory Turnover

An indicator revealing the number of times a company's inventory is turned over and restocked during a specific period, demonstrating how efficiently inventory is handled.

Current Ratio

A financial metric indicating a firm's capacity to settle short-term liabilities or debts coming due within a year.

Company

An enterprise instituted by multiple persons who collaborate to oversee and execute operations in a business, encompassing both commercial and industrial sectors.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for the business's day-to-day operations.