What Would Be an Example of a Consumption Service

question 113

Multiple Choice

What would be an example of a consumption service?

• A)Antonio,the manager of your local chicken shop,purchases a new deep fryer.
• B)The local driver's licence office purchases a new digital camera and printer.
• C)Tony Abbott purchases furniture for his office.
• D)Jake buys an iPhone.
• E)Rhianna gets a haircut.

---

Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.

Par Value

A nominal or face value assigned to a share of stock by the company's charter, which may not reflect the actual market value.

Paid-In Capital

Funds raised by a company from selling its shares to investors, beyond the nominal value of the shares.

Cash Dividend

A payment made by a company out of its earnings to investors in the form of cash.