If the Board of Regents of a Major State University

question 174

Multiple Choice

If the board of regents of a major state university system plans to raise tuition in order to increase revenues, the regents must believe student demand is

• A) elastic.
• B) inelastic.
• C) of unitary elasticity.
• D) perfectly elastic.

---

Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the holder until its maturity.

Accrual of Interest

The recording of interest that has been earned but not yet paid or received in cash.

Stockholders' Equity

The owners' equity in a corporation, representing the residual assets of the company that would be due to stockholders after discharging all liabilities.

Long-Term Debt

Debt that is due for repayment more than one year in the future, often used for significant investments or acquisitions.