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.

---

Definitions:

Identity Formation

The development of a distinct personality or self-concept, often occurring during adolescence.

Generational Forgetting

The phenomenon where historical knowledge, experiences, or skills are not fully passed down from one generation to the next.

Identity Achievement

A concept in developmental psychology where an individual has gone through an exploration of different identities and made a commitment to a particular one.

Peer Pressure

The influence exerted by one's peer group in encouraging a person to change their attitudes, values, or behaviors to conform to group norms.