Turning Points in Business Cycles Occur When

question 85

Multiple Choice

Turning points in business cycles occur when

• A)a new business cycle is initiated at the trough.
• B)the economy hits the peak or trough in the business cycle.
• C)the business cycle begins to follow a new pattern that differs from previous business cycles.
• D)a new business cycle is initiated at the peak.

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Definitions:

Returns

The profit or loss generated from an investment, usually expressed as a percentage of the investment's initial cost.

Capital Structure

The composition of a company's funding through a mix of debt and equity securities.

Market Values

Describes the worth of an asset or company based on the current prices at which it can be sold in the market.

Book Values

The value of an asset as recorded on the balance sheet, calculated as the original cost of the asset minus accumulated depreciation.