Some Firms Use Large Amounts of Capital and Small Amounts

question 45

Multiple Choice

Some firms use large amounts of capital and small amounts of labour, while others use small amounts of capital and large amounts of labour to

• A)use surpluses of labour and capital and eliminate unemployment of these resources.
• B)use the best available technology.
• C)use the resources that are most readily available.
• D)maximize profit.
• E)maximize production.

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Definitions:

Earnings Per Share

This is a measure of a company's profitability, calculated by dividing the company's net income by the number of outstanding shares of its common stock.

Common Stock

Equity securities that represent ownership interests in a corporation, entitling holders to vote on corporate matters and receive dividends.

Earnings Per Share

A financial metric calculated by dividing a company's profit by the number of its outstanding shares of common stock.

Authorized Common Shares

The maximum number of common stock shares that a corporation is legally permitted to issue, as stated in its articles of incorporation.