Identify the Internal Factor That Influences the Stock Prices of a Firm

question 9

Multiple Choice

Identify the internal factor that influences the stock prices of a firm.

• A) Legal constraints
• B) Capital structure
• C) Tax laws
• D) General level of economic activity
• E) Conditions in the stock market

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Definitions:

Agent

One who acts under the direction of a principal for the principal’s benefit in a legal relationship known as agency. See also principal.

Gratuitous Assignment

A transfer of rights or property done freely without the expectation of receiving something in return.

Revocable

means capable of being withdrawn, cancelled, or reversed, often used in the context of trusts or agreements.

Notification of Revocation

The formal process of informing parties involved that a decision, offer, or agreement has been cancelled or withdrawn.