Which Statement Is Correct

question 87

Multiple Choice

Which statement is correct?

• A)A simple capital structure includes potentially dilutive securities.
• B)A simple capital structure excludes potentially dilutive securities.
• C)EPS applies only to a company with a simple capital structure.
• D)A company with a simple capital structure does not need to calculate EPS.

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Definitions:

Economically Most Efficient

The state of achieving the highest level of output with the lowest possible input, optimizing the use of resources without waste.

Resource Prices

The cost of inputs used in the production of goods and services, such as labor, raw materials, and capital.

Market System

An economic system relying on market forces to allocate resources and to determine and regulate prices for goods and services.

What Will Be Produced

A fundamental economic question that addresses the kinds of goods and services to be made available in an economy, determined by factors such as resources, technology, and consumer preferences.