Shareholders' Funds in a Company Are Made Up Of

question 9

Multiple Choice

Shareholders' funds in a company are made up of:

• A) Share capital plus all of the reserves.
• B) Share capital plus all of the reserves plus long-term loans.
• C) Share capital only.
• D) Share capital plus share premium.

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Definitions:

Initial Endowment

The initial set of assets, financial resources, or goods that an individual, institution, or economy possesses.

Utility Function

A mathematical representation that describes how consumers rank different bundles of goods according to the levels of satisfaction or utility those bundles provide.

Edgeworth Box

A diagram used in economics to show the distribution of resources and to find the optimal allocation for two individuals.

Contract Curve

In economics, it refers to the locus of optimal points of allocation of resources between two parties under the constraints of their respective utility functions.