Competition Is Not Severe in the Telecommunication Industry in Brazil

question 17

Multiple Choice

Competition is not severe in the telecommunication industry in Brazil. More than ninety percent of the market is dominated by four large players. Which of the following, if true, will increase the rivalry among these four players?

• A) A recent regulation by the government has made the entry of new players more difficult.
• B) The market growth has slowed down significantly in recent months.
• C) One of the dominant players decides to launch its products in Argentina.
• D) In order to strengthen national security, the Brazilian government has banned the use of Internet telephony.

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Definitions:

Cash Discounts

Reductions in the amount due by a customer if payment is made within a specified period, used as an incentive for quick payment.

Cash Payments

Transactions in which cash is used to settle debts, purchase goods, or services at the time of the purchase.

Cash Short

A situation where the amount of cash on hand is less than what is recorded on the books, often indicative of errors or theft.

Other Income

Refers to revenue generated from activities that are not part of a company's core business operations.