What Does the "Invisible Hand" Described by Adam Smith Refer

question 83

Multiple Choice

What does the "invisible hand" described by Adam Smith refer to?  

• A) the allocative role of markets and market forces 
• B) the importance of government intervention and central planning 
• C) the actions of successful entrepreneurs in directing the economy 
• D) the role of monopolized industries in leading the nation

---

Definitions:

Operating Activities

refer to the primary revenue-generating activities of a business, including production, sales, and provision of services, reflected in its cash flow.

Financing Activities

This refers to transactions and events where cash flows into or out of a company to finance its operations and expansions, such as issuing equity or raising debt.

Company's Own Stock

Shares that were issued and subsequently reacquired by the issuing company, held in the company's treasury and available for various corporate uses.

Indirect Method

A way of preparing the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.