The Main Function of a Platform Firm Is to

question 29

Multiple Choice

The main function of a platform firm is to

• A) deal with the government on behalf of sellers.
• B) link producers with consumers.
• C) perform collective bargaining with sellers on behalf of buyers.
• D) create entry barriers for an industry on behalf of existing firms.

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Definitions:

Acquisition

The process of obtaining control of another corporation, purchasing its shares, or assets, to expand or diversify operations.

Voting Common Stock

Shares that give the shareholder voting rights in corporate decisions, typically one vote per share owned.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before any dividends to common stockholders.

Net Income

A company's overall earnings, after deducting taxes and all other expenses from its total revenue.