Which of the Following Statements Is True

question 9

Multiple Choice

Which of the following statements is true?

• A)In a market system, costs and benefits are publicly posted by individual participants.
• B)In a nonmarket system, individuals voluntarily sacrifice self-interest.
• C)Only in a market system does greed play a motivational role.
• D)It is easy to calculate costs and benefits in a market system.
• E)Regardless of the economic system, it is difficult to measure all costs and benefits.

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Definitions:

Initial Board

The first group of individuals appointed or elected to govern and oversee a newly formed corporation or organization.

Corporation

A legal entity that is separate and distinct from its owners, providing them with limited liability, and recognized as having rights and responsibilities.

Preferred Stock

A security that entitles the holder to payment of fixed dividends and that has priority over common stock in the distribution of assets on the corporation’s dissolution.

Common Stock

A type of equity security that represents ownership in a corporation, with holders usually having a right to vote on corporate matters.