Which of the Following Is NOT an Example of an Organizational

question 213

Multiple Choice

Which of the following is NOT an example of an organizational buyer?

• A) A government buyer purchasing a new desk for the mayor's office.
• B) A woman buying cookware to sell to her friends and neighbors.
• C) A sales rep buying a new necktie to make a good impression.
• D) A wholesaler buying a delivery truck.
• E) None of these is a good example of an organizational buyer.

Identify the concept of the Herfindahl index and its application in assessing market concentration.

Understand the key characteristics defining an oligopoly.

Identify the effects of mergers and acquisitions on market concentration and the Herfindahl index.

Recognize the significance of mutual interdependence in oligopolistic markets.

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Definitions:

Single-Index Model

A model that represents the returns of a portfolio or asset as linearly dependent on the returns of a single market index, simplifying the evaluation of portfolio risk.

Markowitz Model

A portfolio optimization theory that demonstrates how to achieve the best portfolio allocation to maximize return for a given level of risk through diversification.

Systematic Risk

The risk inherent to the entire market or entire market segment, which cannot be eliminated through diversification.