A Seller's Reservation Price Is Generally Equal To

question 44

Multiple Choice

A seller's reservation price is generally equal to:

• A)the buyer's reservation price.
• B)the seller's average cost.
• C)the seller's marginal cost.
• D)the market price.

---

Definitions:

Non-Controlling Interest

A portion of equity in a subsidiary not owned by the parent company, reflecting the minority shareholders' share of the assets and earnings.

Cumulative Dividends

Dividends on preferred shares that accumulate if not paid in one period and must be paid out before dividends can be distributed to common shareholders.

Discontinued Operations

Components of a business that have been sold or otherwise disposed of, or are classified as held for sale, and represent a separate major line of business or geographical area of operations.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after adjustments for minority interests, reported on a combined basis as if the group were a single entity.