Royal motor corp. generates a major portion of its revenues by manufacturing luxury sports cars. however, the company also derives an insignificant percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. which of the following terms best describes royal motor corp.? a. aconglomerate b. a subsidiary c. adominant-businessfirm d. a single-business firm
A. a dominant-business firm
A dominant - business firm -
It is the firm which which is responsible for controlling almost half of the market , where it functions and does not have any major competitor near by , is known as the dominant - business firm .
Hence , from the question , the Royal Motor Corp. is a dominant - business firm , being able to generate profit and revenues via manufacturing luxury cars .