What is meant by capital stock ___________?
Correct answer: C. Both of them
- A. Authorized amount of stock for issue by corporation
- B. The total stated or par value of the permanently invested capital of corporation
- C. Both of them
- D. None of them
Explanation
Capital stock may refer to the corporation’s authorized share capital and, in accounting usage, the total par value of its permanently invested capital. Therefore, both descriptions are accepted here.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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