Which of the Following Represents One of the Basic Rights

question 56

Multiple Choice

Which of the following represents one of the basic rights of stockholders?

• A)Stockholders may sell their stock back to the company if they wish.
• B)Stockholders may authorize a business contract on behalf of the corporation.
• C)Stockholders may receive dividends from corporate earnings.
• D)Stockholders may determine at what price the company issues stock.

---

Definitions:

Inverted-U Theory

The idea that, other things equal, R&D expenditures as a percentage of sales rise with industry concentration, reach a peak at a four-firm concentration ratio of about 50 percent, and then fall as the ratio further increases.

Interest-Rate Cost

The cost associated with borrowing funds, typically expressed as a percentage of the total amount loaned.

Expected Rate

Expected rate often refers to the anticipated return on an investment or the predicted growth rate of an economic variable over a certain period.

Optimal Amount

The most efficient, beneficial, or ideal quantity of a good, service, or resource allocation under given circumstances.