Which of the Following Is True Regarding the Relationship Between

question 61

Multiple Choice

Which of the following is true regarding the relationship between business and society?

• A)Business needs society but the reverse is not true.
• B)Society needs businesses,but the reverse is not true.
• C)Business needs the government,and the government needs society.
• D)Society needs the government,and the government needs business.
• E)Society and business need each other.

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Definitions:

Common Equity

The amount of ownership interest in a corporation, represented by common stock held by investors.

Preferred Shares

Type of equity security that offers dividends and other benefits before common stockholders are compensated, often with no voting rights.

Rate of Return

The rate of return is the percentage of gain or loss on an investment over a specified time period, comparing the initial investment cost to the final value.

Floatation Costs

Fees and expenses associated with issuing new securities in the market, including underwriting, legal, registration, and printing fees, which can impact the net proceeds to the issuer.