Which of the following is an advantage of a large sales volume company?

A. The stock price tends to be more stable.
B. Sales and earnings growth rates are typically higher than those of smaller companies-usually between 15-25%.
C. Yearly high and low prices will be farther apart due to greater price fluctuations.
D. Sales must increase by a larger dollar amount to achieve the same percent of increase as a smaller company.


Answer: A

Business

You might also like to view...

Alex recently began working for a new manager who motivates him to work for the good of the company instead of for himself. Alex's manager is an example of a(n) ________ leader.

a. motivational b. inspirational c. transformational d. psychological

Business

When a bond issue is converted into common stock, total contributed capital is increased by the fair market value of the bonds converted

Indicate whether the statement is true or false

Business

Elkhart, a division of Indiana Enterprises, currently makes 100,000 units of a product that has created a number of manufacturing problems. Elkhart's costs follow.    Manufacturing costs:   Variable$540,000 Fixed 180,000 Allocated corporate administrative cost 60,000 If Elkhart were to discontinue production, fixed manufacturing costs would be reduced by 70%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is:

A. $666,000. B. $726,000. C. $540,000. D. $720,000. E. $594,000.

Business

The _____ is the quantity of a product that will be sold in the market at various prices for a specified time period, and _____ is the quantity of a product that will be offered to the market by suppliers at various prices for a specified period.

A. demand; equity B. demand; supply C. supply; demand D. inventory; demand E. inventory; supply

Business