The Value of Items Owned Minus the Amounts Owed to Others

question 93

Multiple Choice

The value of items owned minus the amounts owed to others equals:

• A)net assets.
• B)net worth.
• C)total liabilities.
• D)total income.
• E)budgeted expenses.

Analyze economic behavior using basic supply and demand tools in the context of GDP.

Understand the concept and components of Gross Domestic Product (GDP) and its importance as an economic measure.

Distinguish between GDP, Gross National Product (GNP), Net National Product (NNP), and other income measures.

Recognize the circular-flow diagram and its components, including the roles of households and firms.

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Definitions:

Capital Structure

Refers to the mix of debt and equity that a company uses to finance its operations and growth.

Public Share Issue

The process by which a company offers new shares for sale to the general public for the first time, through an initial public offering (IPO).

Prospectus

A formal legal document that is required by and filed with securities regulatory bodies to provide details about an investment offering for sale to the public.

Broker

An individual or firm that acts as an intermediary between buyers and sellers, typically in financial or real estate transactions, facilitating deals in exchange for a commission or fee.