A Change in the Composition of the Population Will Generally

question 68

Multiple Choice

A change in the composition of the population will generally

• A)change demand only if there is a change in the size of the population
• B)change demand only if there is no change in the size of the population
• C)change demand even if there is no change in the size of the population
• D)have absolutely no effect on demand
• E)result in a movement along the demand curve

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Definitions:

Preferred Stocks

Shares of a company that provide dividends to their holders before common stock dividends are issued and typically do not come with voting rights.

Cumulative

Cumulative refers to the total amount accumulated over a period of time, adding up all parts or elements.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits, distributed as an incentive to keep investing in the company.

Stated Liquidation Value

The predetermined amount per share that shareholders are guaranteed to receive in the event of the company's liquidation as specified in the corporate charter or bond covenant.