To Say That a Stock Price Is a Signal Means

question 237

Multiple Choice

To say that a stock price is a signal means that:

• A)society can determine the value of a firm.(True Answer )Correct
• B)people transfer firm ownership via the signals.
• C)lower stock prices imply better value.
• D)speculative bubbles can be avoided.

---

Definitions:

Partnership Interest

An ownership share in a partnership, representing a partner's stake in the business's assets and earnings.

Limited Partnership

A form of partnership comprising at least one general partner, who manages the business and is personally liable for partnership debts, and one or more limited partners, who contribute capital and share in profits but are not involved in management and are only liable to the extent of their investment.

Limited Personal Liability

Limited personal liability means that an individual's financial responsibility for business debts or legal claims is restricted, often to the amount they have invested in a company.

Partners

Individuals who share ownership in a business, contributing resources or expertise and sharing profits and losses.