Business, 11.10.2019 01:30 hooplikeapro

3. a characteristic of a natural monopoly is that
a. the firm is dedicated to the use of natural resources.
b. adding businesses in competition would increase cost to the consumer.
c. the firm is supported by the consumer and voted into existence by the voters.
d. there's no government intervention in the market.
student d
incorrect
reference: section 3.5

5. what's the term for the profit made from selling a stock at a higher price than the price paid for the stock?
a. stock profit
b. capital gain
c. depreciation
d. dividend
student a
incorrect
reference: section 3.2

7. a merger between a company and one of its suppliers is known as a merger.
a. horizontal
b. demand
c. vertical
d. supply
student d
incorrect
reference: section 3.4

12. in what way might a partnership be better than a sole proprietorship?
a. profits are split.
b. liability is limited.
c. setup costs are higher.
d. more capital is available.
student b
incorrect
reference: section 3.1

15. one advantage of preferred stock over common stock is that preferred stockholders
a. participate in managing the company.
b. are entitled to a fixed dividend.
c. have the right to vote for the board of directors.
d. get a cheaper price on stock.
student c
incorrect
reference: section 3.2

16. which of the following is a risk of large-scale government borrowing?
a. a gdp loss
b. higher prices and interest rates
c. lower interest rates
d. lower employment
student c
incorrect
reference: section 3.6

18. which of the following is a reason the government can't completely control the business cycle?
a. government has no control over consumer spending.
b. the government can't control interest rates.
c. unemployment is unpredictable.
d. it's difficult to accurately predict the economic future.
student a
incorrect
reference: section 3.8

19. which of the following is an external factor that create the business cycle?
a. psychological factors
b. consumer spending
c. bad weather
d. government spending
student b
incorrect
reference: section 3.7

Answers: 3

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Answers

3. The answer is B.. adding businesses in competition would increase cost to the consumer.
This make it easier for existing business to gained full control on certain market since they're the only choice held by the consumer, which make them able to regulate prices as they please.

5. The answer is D. Dividend
Dividend will be given to all shareholders at the end of the operation year after the company finish calculating their net proft. (the payment is made according to number of shares that held)

7. The answer is A, horizontal merger
The purpose of a horizontal merger is to reduce the variable cost needed by the company in making their product..
Example of this would be a burger chain that conducted a merger with the place that supply them with beef.

12. The answer is D. . More capital is available.
In partnership, the organization could obtain capital from more than one source, while in sole proprietorship, the capital only come from a single owner.

15. The answer is B. are entitled to a fixed dividend.
When a company calculate the amount of dividend each that will received by the shareholders, they will cut a certain amount that would be given to the preferred stock holder before they calculate the amount for common stock bolder

16. The answer is B. Higher prices and interest rates
Large scale of Government borrowing means that they will obtain larger risk for the debt. To make sure that they could re-paid this, they will increase thhe interest rates which leads to the higher prices of the products sold in the country,

18. The answer is D. It's difficult to accurately predict the economic future
There are too many factors that influenced how well an economy in the coutry wil go. Because of this, it would be best to give some control over the business cycle to the hands of the private sector.

19. The answer is B. Bad weather
External factors refer to the factors that are not controlled by Government, Producer, or Consumer.
For example, constant heavy rain will increase the sales of umbrellas.

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3. a characteristic of a natural monopoly is that
a. the firm is dedicated to the use of natur...

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