Which of the Following Is True

question 142

Multiple Choice

Which of the following is true?

• A) The buyer of a firm's stock is purchasing a fractional share in the firm's future net revenues.
• B) When investors believe that a business decision by the management of a firm will increase the firm's future earnings, the price of the firm's stock will tend to rise.
• C) Changing stock prices provide the board of directors and managers of a firm with a strong incentive to make good decisions and undertake productive projects.
• D) All of the above are true.

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Definitions:

Secret Antiperspirant

A branded personal care product designed to prevent perspiration and body odor.

Derived Demand

Demand for a product or service that arises from the demand for another product or service.

Business Product

A good or service sold to organizations for the specific purpose of resale, use in producing other goods, or use in general business operations.

Consumer Product

Goods bought by individuals for personal or household use.