In the 1970s, Atari singlehandedly created a market for home video games, offering a console and cartridges that contained games
like Space Invaders, Centipede, and Asteroids. At the time, Atari effectively implemented a ______ strategy. a. greenfield
b. diversification
c. blue ocean
d. defensive
e. multi-product
The correct option is A, abnormal price change at the announcement
Explanation:
Abnormal price increase before the announcement would only be the case if the there was insider dealing, that is there exists information leakage.
An abnormal price decrease cannot be the case, the market prices a share based on its earnings' strength, in other words a stock with high dividends prospect is priced high.
Option D is wrong there would a price change stemming from the announcement made about large cash dividends payout
This is made due to the application of the cost principle or historical cost concept.
Explanation:
The cost principle or historical cost concept states that the assets, equities, and liabilities are required to be recorded on the financial records on the basis of their original cost. Thus as the cash paid is ZMW 51,000, the same is required to be recorded on the balance sheet of the buyer.
