In Markets, Information About the Relative Value of Resources Is

question 7

Multiple Choice

In markets, information about the relative value of resources is communicated through:

• A)government agencies.
• B)planning committees.
• C)prices.
• D)unions.
• E)cartels.

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Definitions:

Parent

A company that controls other companies (subsidiaries) through ownership of more than half their voting stock or by having a significant influence over them.

Equity Method Investments

An accounting technique used to record investments in which the investor has significant influence over the investee but does not control it outright, typically through the ownership of 20% to 50% of the voting stock.

Cash Dividends

A financial distribution in the form of cash from a corporation to its investors as profits.

Dividend Revenue

Income received from owning shares in a company when the company decides to distribute some of its earnings to shareholders.