One Effect of the Free Enterprise System on U

question 55

True/False

One effect of the free enterprise system on U.S. accounting is that U.S. firms try to avoid disclosing information that would help their competitors.

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Definitions:

Society

A group of individuals living together in a more or less ordered community, sharing common traditions, institutions, and values.

Stock Split

Current shareholders are given some number (or fraction) of shares for each share owned. Thus, in a three-for-one split, each shareholder would receive three new shares in exchange for each old share, thereby tripling the number of shares outstanding. Stock splits usually occur when the stock price is outside of the optimal trading range.

Shares

Units of ownership interest in a corporation or financial asset, providing an equal distribution in any profits, if any are declared, in the form of dividends.

Trades

The act of buying, selling, or exchanging financial instruments, commodities, or other tangible or intangible items between parties.