Which of the Following Statements Is Not True About Shareholders

question 6

Multiple Choice

Which of the following statements is not true about shareholders?

• A) They are the legal owners of business corporations.
• B) They own equal shares of company assets.
• C) They are investors in the company.
• D) Managers pay close attention to their needs and interests.

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Definitions:

Perfect Price Discrimination

A pricing strategy where a seller charges the highest price that each consumer is willing to pay, effectively capturing all consumer surplus as profit.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, a measure of producers' benefit.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit, essentially the cost of producing one additional unit of a good or service.

Total Revenue

The total amount of money a firm receives from the sale of its goods and services, calculated as the price per unit times the number of units sold.