Which of the Following Statements Best Represents What Finance Is

question 60

Multiple Choice

Which of the following statements best represents what finance is about?

• A) How political, social, and economic forces affect corporations
• B) Maximizing profits
• C) The study of how people and businesses make investment decisions and how to finance those decisions.
• D) Reducing risk

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Definitions:

Short Run

A period in economics during which at least one input, such as factory capacity, is fixed and cannot be changed.

Unemployment Benefits

Payments made by the government or a social insurance scheme to unemployed individuals who meet certain eligibility criteria.

Aggregate Demand

The combined demand for goods and services across an economy, pegged at a particular overall price level during a predetermined time period.

Constitutional Amendment

A formal change or addition proposed or made to a constitution, which alters its content and legal ordering.