Which One of the Following Statements Is True

question 4

Multiple Choice

Which one of the following statements is true?

• A) Corporations are required by law to report all activities to their stockholders each month.
• B) Stockholders must approve major changes to corporate policies.
• C) Stockholders must approve the sale of all goods and services by the company.
• D) Corporations are required by law to have two stockholder meetings each year.
• E) Stockholders may vote only by proxy.

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Definitions:

Profit-Maximizing Firm

A company that chooses its level of output and pricing strategy to achieve the highest possible profit based on its costs and the market demand.

Price Elasticity Of Demand

A measure in economics indicating how the quantity demanded of a good changes in response to a change in its price.

Marginal Cost

The increase in total cost that arises from an increase in the production of one additional unit of a good or service.

Profit-Maximizing Seller

A seller who adjusts prices and production levels to achieve the highest possible profit from their goods or services.