Which of the Following Is False

question 38

Multiple Choice

Which of the following is false?

• A) The common stock of a corporation can only be publicly owned.
• B) Firms often issue common stock with no par value.
• C) Preemptive rights help to prevent a dilution of ownership on the part of existing shareholders.
• D) A firm's corporate charter indicates how many authorized shares it can issue.

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the actual value of goods and services produced over a specific period.

Equilibrium

A state in economics where supply equals demand, resulting in a stable market condition where there is no tendency for change.

Equilibrium Level

The state in an economy or a market where supply equals demand, and there is no tendency for change until an external force is applied.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country.