Which of the Following Statements Is True for Both General

question 14

Multiple Choice

Which of the following statements is true for both General Motors and a locally owned restaurant?

• A)Both are perfect competitors.
• B)Both confront perfectly elastic demand for their products.
• C)Neither firm is able to influence the price of their products.
• D)Both seek to maximize profits.

---

Definitions:

Class A Preferred

A type of preferred stock that provides holders with specific financial advantages, such as priority in dividend payments or asset distribution over other classes of stock.

Corporate Assets

All owned items of value, including tangible and intangible properties, that belong to a corporation.

Deadlocked Directors

A situation in which board members are unable to reach a consensus, halting decision-making processes.

Shareholder Proceeding

Legal actions initiated by shareholders, typically against a corporation's management or board of directors, regarding disputes over management decisions, policies, or alleged misconduct.