Briefly define the term "earnings and profits."
What will be an ideal response?
In general, earnings and profits (E & P) represents the dividend-paying capacity of a corporation (i.e., the upper limit on the amount of dividend income a shareholder must recognize on corporate distributions). It represents a corporation's economic income (i.e., its "economic ability" to pay dividends) without impairing its capital. E & P is computed on an annual basis at the end of the tax year (without reduction for any distributions made during the year). The term "earning and profits" is not defined in the Internal Revenue Code. It is roughly analogous to-but different than-the financial accounting concept of retained earnings.
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The labor force consists of
A. those employed plus those on temporary layoff. B. those employed plus those unemployed. C. the working-age population minus those who are in the military or institutionalized. D. the working-age population plus those who are in the military or institutionalized.
Tang drink powder became a $1 billion brand as regional managers in the Middle East added mango and pineapple flavors
Indicate whether the statement is true or false
A business that strives for a low-cost advantage must attain a(n) ________ cost advantage over rivals.
A. absolute B. relative C. evolutionary D. potential
Mary is writing detailed organizational policies for a nonprofit organization. Mary is practicing ______.
A. bureaucracy B. dependency C. experimentation D. closed systems theory