Which One of the Following Statements Is NOT True About

question 78

Multiple Choice

Which one of the following statements is NOT true about ordinary shares?

• A) Ordinary shareholders have the right to vote on the selection of the board of directors for the company.
• B) Ordinary shares are considered to have no fixed maturity.
• C) Owners of ordinary shares are guaranteed dividend payments by the company.
• D) Ordinary shareholders have limited liability.

Understand the concept of market demand and how it is derived from individual demands.

Identify the role of advertising and external changes (e.g., technological, socio-economic) in affecting demand for goods.

Distinguish between movements along the demand or supply curve versus shifts in these curves.

Explain the economic reasoning for specific market actions, such as pricing strategies or responses to market changes.

---

Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum combination of two goods or services that can be produced with a given set of resources and technology.

Scarce Resources

Natural, human, and capital resources that are limited in supply and available for the production of goods and services.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of two goods that can be produced with available resources and technology.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.