Economic Efficiency Indicates That

question 7

Multiple Choice

Economic efficiency indicates that

• A) if something is worth doing, you should do it as well as humanly possible.
• B) all pollution should be eliminated.
• C) automobiles should be made as safe as possible
• D) it nearly always makes sense to stop an activity well before perfection is achieved.

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Definitions:

Mortgage

A type of loan secured by real property, typically used to purchase property or which existing property owners use to raise funds.

Financing Activities

Financing activities are transactions related to raising capital and repaying borrowed funds, such as issuing stocks or bonds, and are reported in the cash flow statement.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Bonds Payable

A classification in accounting for debts of a corporation due to be paid to bondholders at a specified date.