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Gnome Company Is Trying to Decide Whether to Continue to Manufacture

question 160

Multiple Choice

Gnome Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an outside supplier. Which of the following is RELEVANT to this decision?

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Definitions:

Stock Market Transaction

A financial operation such as buying, selling, or trading stocks that takes place in the stock market.

Local Broker

A brokerage firm that operates in a specific geographic area and may specialize in trading securities for local clients.

Specialist

An official in a stock exchange. The specialist is assigned the stocks of specific companies and is responsible for conducting an orderly market in those securities.

Primary Market

The market where new securities are issued and sold for the first time, directly from the issuer to investors.

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