The Incorrect Statement Is

question 39

Multiple Choice

The incorrect statement is:

• A)Fundamental analysis assumes that an analyst can study all the published information in relation to an entity and determine whether its shares are under/over-valued
• B)Fundamental analysis assumes that an analyst should concentrate on studying data about an entity from a primary source and give little weight to secondary sources of information
• C)Fundamental analysis is engaged in by many analysts
• D)Fundamental analysis assumes that an analyst can study all the published information in relation to an entity and determine whether its shares are correctly valued

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Definitions:

Contestable Market

A market where entry and exit are costless enough that companies face potential competition, leading to competitive pricing and behavior as if the market were competitive, even if it’s dominated by a few firms.

Market Entry

The strategy or process by which a company enters a new market.

Market Exit

The process of a company stopping its business operations or leaving a market, often due to unprofitability or strategic realignment.

Concentrated Industry

An industry characterized by a few firms controlling a large market share, leading to reduced competition.