A Corporation Whose Stock Is Owned by Relatively Few People

question 3

Multiple Choice

A corporation whose stock is owned by relatively few people and is not traded openly in stock markets is called a(n) ____________ corporation.

• A)private
• B)public
• C)equity
• D)debt
• E)preferred

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Definitions:

Opportunity Cost

The forgone benefit that would have been derived by an option not chosen.

Next-best Activity

The alternative that must be forgone to engage in a particular activity, representing the opportunity cost of that decision.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Business Cycle

The business cycle refers to the fluctuations in economic activity and growth that an economy experiences over time, marked by periods of expansion and contraction.