Which of the Following Is Not a Major Area of Concern

question 20

Multiple Choice

Which of the following is not a major area of concern and emphasis in modern financial management and in this text?

• A) Inflation and its effect on profits
• B) Stable short-term interest rates
• C) Changing international environment
• D) Increased reliance on debt

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Definitions:

Equilibrium Price

The price in the market where the amount of products available matches the amount of products wanted by consumers.

Deforestation

The clearing or thinning of forests by humans to make the land available for other uses, such as agriculture, logging, or mining, often leading to environmental concerns.

Moral Hazard

The risk that a party insulated from risk may behave differently than if they were fully exposed to the risk.

Unemployment Insurance

The social insurance program that in the United States is financed by state payroll taxes on employers and makes income available to workers who become unemployed and are unable to find jobs.