Which of the Following Will Be a Source of Cash

question 30

Multiple Choice

Which of the following will be a source of cash flows for a shareholder of a certain stock? I. Sale of the shares at a future date

• A) I only
• B) II only
• C) I and II
• D) II and III

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, often intended to protect consumers from excessive prices.