Which of the Following Statements Regarding Competition,as a Fundamental Element

question 79

Multiple Choice

Which of the following statements regarding competition,as a fundamental element of capitalism,is not true?

• A) Competition is responsible for the orderly operation of the market.
• B) The fittest firms tend to survive.
• C) Competition ensures that goods and services are provided at the lowest price.
• D) Competition holds profits to a minimum.
• E) Capitalism guarantees a profit is made.

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Definitions:

Constant Rate

A fixed percentage rate applied over a certain period which does not change.

Dividend Per Share

The amount of dividends paid to shareholders per share, indicating the distribution of company profits to shareholders.

Annual Dividend

The sum of all dividends a shareholder gets from a company over the course of a year.

Dividend Increases

An action taken by a company's board of directors to raise the amount of money paid to shareholders in the form of dividends, usually reflecting the company's strong financial health and positive future earnings outlook.