Which of the Following Statements Is Correct

question 10

Multiple Choice

Which of the following statements is correct?

• A)A general,persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money.
• B)A general,persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits.
• C)A general,persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past.
• D)Expectations about the business cycle have no impact on stock prices.

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Definitions:

Disclosure Statements

Documents that outline the critical information and financial details every party involved needs to know in a financial transaction or legal agreement.

American Franchisee Association

An organization that represents the interests and rights of franchise owners in the United States.

Trade Association

A trade association is an organization founded and funded by businesses that operate in a specific industry, designed to promote common interests, provide resources, and advocate for policies favorable to the industry.

Franchising

A business model that allows one party (the franchisee) to use the trademark, systems, and business model of another party (the franchisor) in exchange for a fee and ongoing royalties.