Which One of the Following Statements Is True

question 128

Multiple Choice

Which one of the following statements is true ?

• A) Resources flow from the government to households.
• B) Resources flow from firms to households.
• C) Taxes flow from firms to the government.
• D) Resource payments flow from firms to households
• E) Imports flow from firms to foreign economies.

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Definitions:

Stated Value

A value assigned to no-par value stock by the corporation's board, not based on market price but used for accounting purposes.

Issue Price

Issue price is the price at which a new set of securities, such as bonds or stock, is offered to the public for the first time.

Preferred Stock

A class of stock that offers dividends and/or liquidation preferences over common stock but typically does not carry voting rights.

Par Value

A nominal value assigned to shares of stock by a company's charter, which has little relation to its market value.