Regulatory Capture Is Said to Have Occurred When Which of the Following

question 203

Multiple Choice

Regulatory capture is said to have occurred when which of the following is true?

• A)Rules and enforcement in an industry are heavily influenced by the industry being regulated.
• B)One firm controls an entire market, having captured customers away from other firms.
• C)Government imposes excessive regulations in an industry, resulting in inefficiencies.
• D)Consumers make all the rules for an industry, forcing firms into inefficient production methods.

---

Definitions:

Financing Activities

Transactions related to raising capital and repaying shareholders, including issuing equity, obtaining loans, and paying dividends.

Investing Activities

Transactions that involve the purchase or sale of long-term assets and investments are considered investing activities.

Non-current Assets

Non-current assets are long-term resources owned by a company, expected to provide economic benefits beyond one year, such as property, plant, and equipment (PP&E), and intangible assets.

Direct Method

A cash flow statement presentation that lists major categories of gross cash receipts and payments.