When a Firm Buys a Product from Another Firm in the Same

question 33

Multiple Choice

When a firm buys a product from another firm in the same company, it is charged

• A)an implicit price.
• B)a market price.
• C)a predatory price.
• D)a transfer price.

---

Definitions:

Reverse Split

Procedure where a firm’s number of shares outstanding is reduced.

Stock Price

The cost of purchasing a single share of a particular company's stock on the open market, fluctuating based on demand, market conditions, and company performance.

Shares Outstanding

Shares outstanding refer to the total number of shares of a company's stock currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Cash Dividend

A monetary payment made by a company to its shareholders out of its current or retained earnings.