Which of the Following Statements Is Correct

question 160

Multiple Choice

Which of the following statements is correct?

• A) When supply increases, the quantity increases and the price falls.
• B) When demand decreases, both the price and the quantity increase.
• C) When demand increases, both the price and the quantity decrease.
• D) When supply decreases, both the price and the quantity decrease.

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Definitions:

Authorized Stock

The maximum number of shares a corporation is legally permitted to issue, as stated in its articles of incorporation.

Corporate Charter

A legal document issued by a government that establishes a corporation as a legal entity and outlines its rights and obligations.

Formal Accounting

A systematic process for recording, summarizing, and reporting the financial transactions of an organization, adhering to standardized guidelines and principles.

Initial Capital

The amount of money that is invested in a business at the start, used to cover startup costs and initial operating expenses.