Which of the Following Parties Would Have an Interest in the Amount

question 164

Multiple Choice

Which of the following parties would have an interest in the amount of cash at a company?

• A)Creditors expecting consumers to repay loans and interest
• B)Employees expecting payment for their work
• C)Investors expecting a dividend
• D)All of the above are parties interested in the amount of cash at a company

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Definitions:

Long Run

A period in economics during which all factors of production and costs are variable, allowing for full adjustment to change, such as new technology or market conditions.

Profit

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activities.

Loss

An economic condition where expenses exceed revenues, indicating negative financial performance.

Profit-Maximizing

A strategy or process by which a firm determines the price and output level that returns the greatest profit.