Which of the Following Statements Is NOT True About the Short

question 302

Multiple Choice

Which of the following statements is NOT true about the short run and the long run?

• A) The short run for a firm is today while the long run is next week.
• B) These terms apply to the planning decisions of firms.
• C) The firm is always operating in the short run.
• D) In the short run, the firm can change the amount of variable inputs.

---

Definitions:

Par-value

The nominal or face value assigned to a share of stock by the company's charter, not necessarily reflecting its market value.

Actual Value

The true or fair market value of an asset or property, as opposed to its estimated or perceived value.

Indebtedness

A financial condition in which an individual or organization owes money to another party.

Debenture

A type of long-term debt instrument used by large companies to borrow money, at a fixed rate of interest.