Which of the Following Statements Is False

question 15

Multiple Choice

Which of the following statements is false?

• A) Preference shareholders take less risk
• B) A shareholders liability is limited
• C) Dividends are allowable as an expense to be charged against taxation
• D) Companies usually pay an interim dividend part of the way through the year

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Definitions:

Price

The cost anticipated, necessary, or paid out in return for acquiring something.

Long-Run Price

The price level at which economic forces such as supply and demand are balanced over a longer time frame, considering all inputs are variable.

Output

The amount of goods or services produced by a business, industry, or economy within a given period.

Perfectly Competitive Industry

A perfectly competitive industry is a market structure where many firms offer identical products, there are no barriers to entry or exit, and each firm has no influence over the market price.