Which of the Following Statements Is True

question 10

Multiple Choice

Which of the following statements is true?

• A)The statistics on GDP are frequently revised as new data are collected over the course of the year.
• B)Since the statistics on GDP are frequently revised, businesses and government officials rarely use the GDP data to make decisions.
• C)Since the statistics on GDP are frequently revised, the early reports on GDP are meaningless.
• D)The statistics on GDP are rarely revised because the government waits until all data have been collected to report the statistics on GDP.
• E)The statistics on GDP are rarely revised because most of the data about GDP are rarely revised.

---

Definitions:

Capital Structure

The combination of a firm's long-term loans, particular short-term borrowings, ordinary shares, and preferred shares, which represents how a company funds its general activities and expansion.

Dividends

Distributions of earnings given to shareholders by a corporation, generally from its profits.

Unlevered Cost

The cost of financing a project or investment without considering the effects of leverage or borrowing.

Capital

Financial assets or the financial value of assets, such as cash, used by a business to fund its operations and investments.