When Preparing a Price Index Based on Multiple Products,if the Price

question 122

Multiple Choice

When preparing a price index based on multiple products,if the price of each product is weighted by the quantity of the product purchased in a given period of time,the resulting index is called ___________ price index.

• A)Paasche
• B)Weighted aggregate
• C)Laspeyres
• D)Cyclical (seasonal)

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Definitions:

Dividend Policy

The policy a company uses to decide how much it will pay out to shareholders in dividends. It involves whether to distribute profits to shareholders or reinvest them in the business.

Residual Dividend

A policy where dividends are paid to shareholders from the leftover or "residual" profits after all operational and capital expenditures are met.

Reverse Stock Split

A corporate action where a company decreases the number of its existing shares to increase the share price without changing the company’s market capitalization.