Which of the Following Best Describes the Term Laissez-Faire

question 58

Multiple Choice

Which of the following best describes the term laissez-faire?

• A)intervening in the economy
• B)leaving the economy alone
• C)creating monopolies
• D)disbanding monopolies

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that accrues dividends in the event that any dividends are missed, ensuring that preferred shareholders are paid both missed and current dividends before any are paid to common shareholders.

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and potential for dividends.

Dividends

Distributions made to shareholders by a company, often from its earnings.

Par Common Stock

The nominal or face value assigned to common stock shares in the charter of a corporation.