Which of the Following Statements Is TRUE

question 137

Multiple Choice

Which of the following statements is TRUE?

• A)The long-run potential of the economy declines as output per worker falls during a recession.
• B)The long-run potential of the economy increases as output per worker rises during an expansion.
• C)The long-run potential of the economy increases as output per worker rises during an expansion,but the long-run potential of the economy doesn't change as output per worker falls during a recession.
• D)Changes in output per worker over the business cycle have nothing to do with the long-run potential of the economy.

Recognize the characteristics and responsibilities of different types of responsibility centers within businesses.

Identify and explain the benefits and disadvantages of decentralization.

Understand the concept of a franchise and its typical fee structures.

Comprehend the principles of responsibility accounting and its reports at different management levels.

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Definitions:

Journal Entries

Records of financial transactions in accounting, indicating the accounts affected, amounts, and descriptions of transactions.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing the amount of outstanding stock on the market.

Common Stock

An equity security that represents ownership in a corporation, giving shareholders the right to vote on corporate matters and receive dividends.

Stock Transfer Agent

A third-party firm hired by a company to track and manage its stockholders and transactions, including transfers and issuance of stock certificates.