Which of the Following Statements Is Correct

question 12

Multiple Choice

Which of the following statements is correct?

• A)The expected future profitability of a corporation influences the demand for that corporation's stock.
• B)When a corporation sells stock as a means of raising funds it is engaging in debt finance.
• C)The owners of bonds sold by the Microsoft Corporation are part owners of that corporation.
• D)All bonds are,by definition,perpetuities.

Comprehend the factors contributing to trade surpluses and deficits.

Recognize the concepts of net exports, net capital outflow, and their implications for trade balance.

Identify the effects of transportation costs and trade barriers on international trade.

Distinguish between foreign direct investment and foreign portfolio investment.

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Definitions:

Outputs

Outputs are the results or products generated by a system, process, or activity after processing input.

Efficiency

The ratio of the useful output of a system to its input, often used to measure the performance and productivity of a process or system.

Clean Sheet

An approach in design or planning that starts from scratch, without considering prior work or constraints, often referred to as starting with a 'blank slate'.

BPR

Business Process Re-engineering, a strategy for making an organization's business processes more efficient and effective.