In Terms of the Circular Flow Diagram Businesses Obtain Revenue

question 98

Multiple Choice

In terms of the circular flow diagram businesses obtain revenue through the _____ market and make expenditures in the _____ market.

• A)product; financial
• B)factor; product
• C)product; factor
• D)capital; product

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Definitions:

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Treasury Shares

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock on the financial market but not considered when calculating earnings per share or dividends.

MBCA

Stands for the Model Business Corporation Act, which is a template law designed to standardize and regulate the formation and operation of corporations across the United States.

Limited Voting Rights

Voting rights that are restricted in some manner, such as being allowed only under certain conditions or only applying to specific matters.