Match the Terms to the Definitions

question 50

Multiple Choice

Match the terms to the definitions.
-A common stock provision that provides for the maintenance of stockholders' ownership percentage upon the issuance of new stock.

• A)Authorized shares
• B)Issued shares
• C)Outstanding shares
• D)Par value
• E)Stated capital (legal capital)
• F)Preemptive right
• G)Retained earnings
• H)Stock split
• I)Stock option
• J)Stock warrant
• K)Treasury stock
• L)Call provision
• M)Earnings per share
• N)Dividend yield ratio
• O)Dividend payout ratio

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Definitions:

Economic Model

A simplified representation of economic processes, often using mathematical formulas or graphs, to analyze behavior and predict outcomes.

Inductive Reasoning

A method of reasoning in which a conclusion is reached based on the observation of specific instances or patterns.

Variable Theory

A conceptual framework that outlines how variables interact within a particular study or model.

Normative Economics

A branch of economics that expresses value judgments about economic fairness or what the outcome of the economy or goals of public policy ought to be.