Caroline Is an Artist

question 197

Multiple Choice

Caroline is an artist.She purchases canvas,paints,brushes,and accessories for $75.She sells one of her original paintings to an art gallery for $1,500,even though an art lover would pay $4,500 for that painting.How much value does Caroline add?

• A)$75
• B)$1,425
• C)$1,500
• D)$4,425

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Definitions:

Management

The process of directing and controlling a group of people or an organization in order to achieve a goal.

Secondary Market

A market where investors buy and sell securities they already own, typically through a brokerage.

Primary Market

The market where new securities are issued and bought directly from the issuing company, facilitating capital raising.

Auction Market

A marketplace where buyers and sellers enter bids and offers simultaneously; prices are determined through direct interaction of supply and demand.