Which of the Following Is Correct? Price Controls

question 131

Multiple Choice

Which of the following is correct? Price controls

• A)always help those they are designed to help.
• B)never help those they are designed to help.
• C)often hurt those they are designed to help.
• D)always hurt those they are designed to help.

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Definitions:

Financing

The act of providing funds for business activities, making purchases, or investing.

Capital

Long-term assets or the money used to support long-term assets and projects. Long-term debt and equity on the balance sheet.

Profitability Index

A capital budgeting tool that measures the relationship between the present value of cash inflows and the initial investment, indicating the relative profitability of a project.

Cost of Capital

The rate of return a company must earn on its projects to maintain its market value and attract funding, often consisting of debt and equity costs.