One Reason Why, in the Last Four Decades, the Number

question 26

Multiple Choice

One reason why, in the last four decades, the number of new auto makers in the world has been very small compared to the past is that

• A)the automobile cannot be improved upon in any way by new producers.
• B)new auto makers cannot obtain necessary inputs to produce new cars.
• C)governments restrict who can produce automobiles.
• D)new producers cannot match the economies of scale of existing auto makers.

---

Definitions:

Dividend Payout

The portion of a company's earnings that is distributed to shareholders in the form of dividends, usually expressed as a percentage of the earnings.

Lower Volatility

Refers to the characteristic of an asset or portfolio to experience less fluctuation in price over time.

Intrinsic Value

The actual value of a company or asset based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.

Time Value

The principle that the value of money changes over time due to its potential earning capacity, impacting investment decisions.