In Terms of the Circular Flow Diagram, Businesses Obtain Revenue

question 223

Multiple Choice

In terms of the circular flow diagram, businesses obtain revenue through the _____ market and make expenditures in the _____ market.

• A)product; financial
• B)resource; product
• C)product; resource
• D)capital; product

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Definitions:

Stock Price

The current price at which a share of a company is traded on the stock market, reflecting the market's supply and demand for the stock.

Activist Investors

Investors, often holding significant stock in a company, who seek to effect change within the company by influencing its management and policies.

Shareholders

Individuals or institutions that own one or more shares of stock in a public company, making them partial owners of the company.

Reinvesting

The process of using dividends, interest, or profits from investments to purchase additional shares or units instead of taking the earnings as cash.