Value Added Is the Difference Between What It Costs to Produce

question 21

True/False

Value added is the difference between what it costs to produce a product and the value the marketplace puts on it.

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Definitions:

Share Capital

The total amount of money raised by a company through the sale of shares to shareholders; represents the equity funding of the business.

Stock Dividends

A form of dividend paid by a company to its shareholders in the form of additional shares, rather than cash.

Market Price

The current price at which an asset or service can be bought or sold in a public market.

Stock Dividends Distributable

A portion of a company's earnings allocated to shareholders in the form of additional shares, rather than cash, typically at a fixed rate.