If Two Variables Are Inversely Related, Then as the Value

question 248

Multiple Choice

If two variables are inversely related, then as the value of one variable

• A) increases, the value of the other may either increase or decrease.
• B) decreases, the value of the other decreases.
• C) increases, the value of the other decreases.
• D) increases, the value of the other increases.

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Definitions:

Stockholders' Equity

The amount of capital given to a company by its shareholders, plus retained earnings or minus the company's accumulated losses.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and equity at a specific point in time.

Common Stock

Common stock represents ownership shares in a corporation, providing voting rights and potential dividends to shareholders.

Earnings Per Share

A financial ratio that measures the amount of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.