Which of the Following Statements Is Not True

question 20

Multiple Choice

Which of the following statements is not true?

• A)Most board members like to keep stockholders happy.
• B)Few things will unite stockholders into a powerful opposition force more rapidly than omitted or lowered dividends.
• C)Intelligent investors must be concerned about future after-tax profits.
• D)If a cash dividend is declared by the board of directors, each stockholder by law receives an equal amount per share.
• E)Corporate dividends are always paid in cash.

Assess the impact of external factors such as government policies and global events on supply.

Understand the impact of supply and demand changes on equilibrium price and quantity.

Identify conditions that lead to a market surplus or shortage.

Recognize the factors influencing shifts in supply and demand curves.

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Definitions:

MU/P Ratio

The ratio of marginal utility (MU) to price (P), used to determine the optimal consumption point where consumer satisfaction per unit of cost is maximized.

Marginal Utility

The heightened benefit received from using one more unit of a good or service.

Marginal Utility Per Dollar

The additional satisfaction obtained from spending one more dollar on a good or service.