Which of the Following Statements Is True for a Public

question 35

Multiple Choice

Which of the following statements is true for a public company?

• A) It must follow the requirements of the Corporations Act.
• B) It may be a company limited by guarantee.
• C) It can issue either ordinary or preference shares.
• D) All of the statements are true.

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Definitions:

Producer Surplus

The difference in the expected remuneration by producers for offering a good or service and the actual revenue they secure.

Purely Competitive

A market structure characterized by many buyers and sellers, where each seller is a price taker and homogeneous products are offered.

Market

An economic system that allows buyers and sellers to exchange goods and services, determining prices through the laws of supply and demand.

Deadweight Loss

signifies a loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.