Stock in a Company Is

question 62

Multiple Choice

Stock in a company is:

• A) a share of ownership of the company.
• B) an IOU that pays interest.
• C) a portion of a firm's profits paid to shareholders.
• D) a component of private savings.

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Definitions:

Production Machinery

Equipment and machines used in the manufacturing process to produce goods and products.

Capital Equipment

Long-term assets such as machinery, vehicles, or large tools that a business uses in its operations to produce goods or services.

Leverage Ratio

A financial ratio indicating the level of debt used by a company to finance its assets, relative to its equity.

Tax Burden

The total amount of income, property, and sales tax that an individual or corporation must pay to various government agencies.