Which Statement Is FALSE

question 158

Multiple Choice

Which statement is FALSE?

• A) Network goods are usually sold by monopolies or oligopolies.
• B) When networks are important the "best" products usually win.
• C) Standard wars are common in establishing network goods.
• D) Competition in network goods is for the market, not in the market.

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Definitions:

Dividend Payout Ratio

A financial ratio that shows the portion of a company's earnings paid out to shareholders as dividends, expressed as a percentage of the company's total earnings.

Earnings per Share

A company's profit divided by its number of common outstanding shares.

Book Value per Share

This is the equity available to common shareholders divided by the number of outstanding shares, indicating the value per share if the company were liquidated.

Return on Total Assets

A financial ratio that measures the efficiency of a company's use of its assets in generating profit, calculated as net income divided by total assets.