Which of the Following Can Be Described as Involving Direct

question 140

Multiple Choice

Which of the following can be described as involving direct finance?

• A)A corporation takes out loans from a bank.
• B)People buy shares in a mutual fund.
• C)A corporation buys a short-term corporate security in a secondary market.
• D)People buy shares of common stock in the primary markets.

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Definitions:

Long Run

A time frame where all production elements and expenses can change, providing businesses the flexibility to adapt to market fluctuations.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability to adjust the production level.

Short Run

A period in economics during which some factors of production or inputs are fixed, influencing decisions on production and costs.

Fixed Costs

Costs that do not vary with the level of production or sales and must be paid regardless of the quantity produced or sold.