A Stockholder Is Interested in the Ability of a Firm

question 192

Multiple Choice

A stockholder is interested in the ability of a firm to

• A) pay consistent dividends.
• B) appreciate in share price.
• C) survive over a long period.
• D) All of these answer choices are correct.

---

Definitions:

Buyers and Sellers

Participants in a market who exchange money for goods or services, where buyers provide the money and sellers provide the goods or services.

Markets

Markets are arenas in which buyers and sellers come together to exchange goods, services, or financial instruments at determined prices.

Equilibrium

A situation in the market where demand matches supply, resulting in steady prices.

Supply Curve

The supply curve is a graphical representation showing the relationship between the price of a good and the amount that suppliers are willing and able to sell in the market.