Which of the Following Best Describes the Term "Equity

question 188

Multiple Choice

Which of the following best describes the term "equity"?

• A)The amount of total profits earned by a business since it began operations
• B)The amount of interest or claim that the owners have in the business
• C)The economic resources of a business entity
• D)The cumulative profits earned by a business less any dividends distributed

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Definitions:

Bags Of Pretzels

Not a standard economic key term, often used as an example in contextual scenarios about goods.

Market

A market is any arrangement that allows buyers and sellers to exchange goods, services, and information. It determines the price and allocation of resources through the interactions of supply and demand.

Normal Good

a good for which demand increases when consumer income rises, and falls when consumer income decreases.

Equilibrium Price

The market price at which the quantity demanded of a good equals the quantity supplied, leading to market balance.