Redemption of Shares Is Not Permitted If the Corporation

question 70

Multiple Choice

Redemption of shares is not permitted if the corporation:

• A) asks for an injunction.
• B) would, by that action, reduce total assets below the stated capital amount.
• C) has outstanding treasury shares.
• D) is likely to be rendered insolvent.

Distinguish between intermediate goods and final goods in the context of GDP calculation.

Appreciate the effect of inflation and deflation on real GDP and nominal GDP.

Interpret economic indicators related to GDP, including per capita real GDP and the GPI.

Assess the implications of the underground economy on the measurement of GDP.

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Definitions:

Rent Payment

Monetary compensation paid by a lessee to a lessor for the use of a particular property, piece of equipment, or facility.

Land Supplied

Land supplied indicates the quantity of land offered for use or development, affected by factors like pricing, zoning regulations, and market demand.

Rationing Function

The ability of market prices to allocate scarce resources efficiently among competing uses.

Incentive Function

The inducement that an increase in the price of a commodity gives to sellers to make more of it available (and conversely for a decrease in price), and the inducement that an increase in price offers to buyers to purchase smaller quantities (and conversely for a decrease in price).