Share Amalgamations

question 32

Multiple Choice

Share amalgamations:

• A)try to prevent excessive speculation from destabilising the market.
• B)encompass the division of the entity's shares into units of smaller value.
• C)is a system in which larger institutions submit bids for blocks of stock in an IPO.
• D)are the revaluation and elimination of some of the firm's issued shares,resulting in a smaller number of shares of a higher value,with the overall market capitalisation of the company remaining unchanged.

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Definitions:

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, equating to the opportunity cost of capital and resources.

Implicit Costs

Indirect expenses that do not involve a direct cash outlay but represent an opportunity cost, such as using resources for one purpose over another.

Average Product

The output per unit of input, such as the number of goods produced per worker, used to measure productivity efficiency.

Marginal Product

The additional output that is produced by employing one more unit of a factor of production, holding other factors constant.