When a Market Is Externally Efficient, It Means That

question 85

Multiple Choice

When a market is externally efficient, it means that

• A) timely and accurate information is available.
• B) the market is liquid.
• C) transaction costs are low.
• D) prices adjust rapidly to new information.
• E) the number of buyers and sellers are the same.

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Definitions:

General Partnership

A partnership that involves a complete sharing in both the management and the liability of the business.

Limited Liability

A legal structure that limits an owner's loss to the amount invested in a company, protecting personal assets from the company's debts and obligations.

Partnership Interest

The share or portion of ownership that a partner has in a partnership, often reflected in the percentage of the business's profits or losses they receive.