Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A)A firm can operate in either the short run or the long run.
• B)While a firm can plan as if it is in the long run,it can operate only in the short run.
• C)The short run is a period of time of less than six months.
• D)The short run is a period of time of less than one year.

---

Definitions:

Investors

Individuals or organizations that allocate capital with the expectation of receiving financial returns.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a company, such as issuing debt or stock.

Creditors

Individuals, businesses, or financial institutions that are owed money by debtors or customers.

Owner's Equity

Represents an owner's total investment in a company after subtracting liabilities from assets; it signifies the net value an owner has in the business.