Which of the Following Statements Is Correct

question 57

Multiple Choice

Which of the following statements is correct?

• A)Mrs.Lovejoy decides to invest in companies which she believes are producing their goods based on the preferences of consumers.Mrs.Lovejoy is therefore investing in companies that are allocatively efficient.
• B)Mrs.Lovejoy decides to invest in companies which she believes are producing their goods based on the preferences of consumers.Mrs.Lovejoy is therefore investing in companies that are productively efficient.
• C)Mrs.Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost.Mrs.Lovejoy is therefore investing in companies that are allocatively efficient.
• D)Mrs.Lovejoy decides to invest in companies which she believes can produce their goods at the lowest possible cost.Mrs.Lovejoy is therefore investing in companies that are both allocatively and productively efficient.

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Definitions:

Liquidity Ratios

Financial metrics that measure a company's ability to meet its short-term obligations using its most liquid assets.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organizational performance against strategic goals.

Mission and Vision

Statements that articulate a company's purpose and aspirations, guiding its strategy, goals, and organizational culture.