Market Intruders Have the Potential to

question 13

Multiple Choice

Market intruders have the potential to

• A) create barriers to exit
• B) increase competition
• C) reduce profitability for marginal firms
• D) change the industry

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Definitions:

Taxable Income

Earnings subject to taxation, which equals gross income minus any allowable deductions and exemptions.

Non-Dividend Paying Corporation

A corporation that chooses not to distribute any part of its earnings to shareholders as dividends, typically to reinvest in the business.

Limited Liability Company

An organizational form that merges the direct taxation benefits of a partnership or sole proprietorship with the limited legal responsibility characteristic of a corporation.