Price Controls

question 69

Multiple Choice

Price controls:

• A) always increase economic efficiency.
• B) always lead to more equitable results.
• C) can result in inequitable outcomes.
• D) all of the above statements are true.

---

Definitions:

Capital Structure

The combination of a business's long-term loans, particular short-term borrowings, common stock, and preferred stock, employed to fund its general activities and expansion.

Retained Earnings

The portion of a company's profits that are kept within the company instead of being paid out to the shareholders as dividends.

Issuing Shares

The process by which a company sells new shares to investors in order to raise capital.

Liquidity

The ability of an asset to be converted into cash quickly without significantly affecting its price.