A Money Flow in the Circular Flow Diagram Is I

question 80

Multiple Choice

A money flow in the circular flow diagram is i. the government's collection of taxes.
Ii) Ford's production of SUVs.
Iii) Nike's payment of wages to its workers.

• A) ii and iii
• B) i, ii and iii
• C) i and iii
• D) i only
• E) ii only

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, which bears no relation to its market value.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership interest in a company.

Common Stock

Equity ownership in a corporation, giving shareholders voting rights and a share of the company's profits through dividends.

Cumulative Nonparticipating Preferred Stock

A type of preferred stock that accumulates unpaid dividends but does not have a right to share in the company's earnings beyond the agreed rate.