Two Characteristics That Make Owning Stock Attractive Are

question 30

Multiple Choice

Two characteristics that make owning stock attractive are:

• A) unlimited liability and first claim on assets.
• B) share prices are relatively inexpensive and are transferable.
• C) each share represents a large percentage of ownership and dividends are fixed.
• D) dividends are paid before any other distributions are made and stocks are transferable.

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Definitions:

Variable Operating

Expenses associated with the operation of a business that vary with the level of production or sales, such as raw materials and direct labor costs.

Merchandise Inventory

The total of all goods held by a company that are ready for sale, typically used in retail and wholesale operations.

Direct Labour Budget

A direct labour budget estimates the total labor cost and number of labor hours required for production in a given period, based on forecasted sales and production levels.

Materials Purchases

involves the acquisition of raw materials required for the production process, an essential part of managing manufacturing inputs.