A Typical Trend During a Recession Is That

question 36

Multiple Choice

A typical trend during a recession is that:

• A) the unemployment rate falls.
• B) the popularity of the incumbent president rises.
• C) incomes fall.
• D) the inflation rate rises.

Understand the relationship between par value, book value, and market value of stock.

Recognize the impact of the 1984 Revised Model Business Corporation Act on corporate asset distributions.

Differentiate between the income statement and balance sheet treatment of various equity transactions.

Comprehend the requirements and implications of current GAAP on earnings per share calculations.

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Definitions:

Endoderm

The primary germ layer that gives rise to epithelial tissues only.

Morula

A zygote that has undergone cleavage and results in a ball of cells.

Blastocyst

A morula that travels down the uterine tube to the uterus and is invaded with fluid. It then implants into the wall of the uterus.

Cleavage

The process by which a single cell divides into two or more daughter cells, often referred to in cellular biology and embryology.