Which of the Following Questions Should Potential Investors Answer Before

question 52

Multiple Choice

Which of the following questions should potential investors answer before investing?

• A)Is this a good price for the stock?
• B)Is this firm in a position that will allow profitability in the future?
• C)Are this firm's strengths and weaknesses likely to get better or worse?
• D)Are this firm's threats and opportunities likely to get better or worse?
• E)All of the above

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Definitions:

Quantity Change

An alteration in the amount of goods or services supplied or demanded in a market.

Average Fixed

The fixed costs of production divided by the quantity of output produced, illustrating how those costs are spread over output.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced.

Total Output

The total quantity of goods or services produced by an individual, firm, industry, or economy.