The Term "Business Fluctuations" Refers to

question 9

Multiple Choice

The term "business fluctuations" refers to

• A) changes in overall business activity, as evidenced by changes in national income, employment, and the price level.
• B) changes in the general price level from inflation to deflation, or vice versa.
• C) changes in the full employment level of economic activity.
• D) changes in the value of the dollar.

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Definitions:

Fair Value

An estimate of the market price of an asset or liability, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.

Issue Price

The price at which new shares are offered to the public or bonds are sold, determined at the time of issue.

Stock Dividends Distributable

It represents the shares that are due to shareholders as a dividend but have not yet been distributed.

Retained Earnings

The accumulated portion of net income that a company decides to keep, rather than distributing among shareholders as dividends, to finance investment or pay off debt.