An Investment Decision Involves Choosing

question 20

Multiple Choice

An investment decision involves choosing

• A)A rate of output and is a short-run decision.
• B)A rate of output and is a long-run decision.
• C)The amount of plants and equipment and is a short-run decision.
• D)The amount of plants and equipment and is a long-run decision.

---

Definitions:

Dividends Grow

The increase in the dividend amount paid out by a company to its shareholders over time.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.

Rate of Return

The successful or unsuccessful financial change in an investment over a predetermined timeline, outlined as a percentage of the initial expenditure.

Annual Dividend

The complete sum of dividends a shareholder gets from a corporation over the course of a single fiscal year.