Answer:
Key ideas:
- A single entity controls the flow of the product.
- Possesses the power to limit prices.
- Will have some influence in politics.
- Difficult for new companies to enter the market.
Explanation:
Monopoly refers to the state when there is only one company controlling the flow of products, therefore controlling the prices of it. There are a lot of examples of monopoly in the contemporary era such as AB Inbev, but it doesn't mean that it is totally a modern concept. Monopoly existed even in history take for example the case of Carnegie steel mills or the issue of railroads.
When one company possess such power that it can control the price, it can badly damages the interest of other investors and consumers. But the reason they create a monopoly is that they have heavy influence in politics. That is how they turn up the decisions to their own benefits. And monopolies always try to create hurdles for new investors to get in the market. Because they are charging whatever they want due to no competition, as soon as new competition arrive it will challenge the monopoly which it can't take.
Answer:
The correct answer is letter "A": cumulative preferred stock that have been declared but have not been paid.
Explanation:
Dividends in arrears are dividends that have not been paid in a period on cumulative preferred stock. A company does not necessarily have to pay dividends to its shareholders but the payment becomes cumulative. Under this situation, it is said that the organization has failed to generate enough cash during the year. Besides, there must be a dividend declaration for the dividends in arrears to be liable recognized.
Answer:
firm-specific risk.
Explanation:
Firm-specific risk can be regarded as unsystematic risk tht is associated with a specific investment in a particular firm, and as regards to theory of finance this is completely diversifiable.
Under this risk, It is possible for an investor to lower their risk through increament of the number of investments that they are having in their portfolio. As regards investor,
specific risk can be regarded as hazard which applies to a specific company.
It should be noted that The risk that cannot be diversified away is firm-specific risk.
If there is an expected shortage of copper, you would expect that the price of copper would go up. The law of supply and demand would say that as a resource becomes more scarce, the price would increase.
In this case, a person would want to buy and store copper for the future.
Sorry I don’t speak Italian
