Which of the Following Statements Is Correct

question 12

Multiple Choice

Which of the following statements is correct?

• A)The expected future profitability of a corporation influences the demand for that corporation's stock.
• B)When a corporation sells stock as a means of raising funds it is engaging in debt finance.
• C)The owners of bonds sold by the Microsoft Corporation are part owners of that corporation.
• D)All bonds are,by definition,perpetuities.

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Definitions:

Reshoring

The process of bringing back manufacturing and services to a country from overseas to strengthen the local economy and reduce reliance on foreign suppliers.

Minimum Efficient Scale

The smallest production quantity at which the long-run, total average cost is minimized.

Economies of Scale

Refers to the cost advantage that arises with increased output of a product, leading to a reduction in the per-unit cost.

Production Process

A sequence of steps or operations involved in the manufacture of goods or the delivery of services.