The first part of each of the following is true. The second part, in italics, ma
ID: 456318 • Letter: T
Question
The first part of each of the following is true. The second part, in italics, may not be. First say whether the part of the statement in italics is true or false and then, if false, briefly explain why, focusing on the most important reason if there is more than one. The studio deal in the Netflix.com, Inc. case involved getting DVDs for a lower upfront cost but having to pay a royalty every time the DVD was viewed. Because this would be a shift from relatively fixed to relatively variable costs, this change would increase risk for both Netflix and Blockbuster, due to the greater cost variability._____The U.S. takes a more 'free market' approach than many countries in terms of which companies may go public. A crucial aspect of this approach is to have strict regulations requiring companies to reveal relevant information.________Once the JOBS (Jumpstart Our Business Startups) Act is fully implemented, equity shares in private companies will not have any restrictions on when and how they can be traded.______Explanation / Answer
1. True
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