A Technological Advance in the Production of Automobiles Will

question 132

Multiple Choice

A technological advance in the production of automobiles will:

• A)increase the demand for automobiles.
• B)increase the supply of automobiles.
• C)decrease the demand for automobiles.
• D)decrease the supply of automobiles.

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Definitions:

Stockholders' Equity

The portion of a company's assets that belongs to the shareholders after debts and liabilities have been settled.

Common Stock

Shares representing ownership in a company, entitling holders to vote at shareholder meetings and receive dividends.

Net Income

The conclusive earnings a company retains after all operational costs and taxes are taken away from the revenues.

Statement of Cash Flows

A financial document that provides a summary of the cash inflows and outflows for a company over a specific period of time, showing how it raises and spends money.