Dividends are
A. bonuses given to managers of corporations, to ensure that the managers perform in the way that stockholders want.
B. taxes on the profits of corporations.
C. the portion of a corporation's profits that are distributed to stockholders.
D. the portion of a corporation's revenues that are distributed to bondholders.
Answer: C
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If the resource market is perfectly competitive:
a. the market demand for the resource is perfectly elastic. b. the market demand for the resource is perfectly inelastic. c. the suppliers can affect the input price by increasing or reducing their supply. d. the input price to each firm is constant. e. the supply of the resource is perfectly inelastic.
When the price of coffee increases 5%, quantity demanded decreases 10%. The price elasticity of demand for coffee is ________ and total revenue from coffee sales will ________.
A. inelastic; decrease B. elastic; decrease C. inelastic; increase D. elastic; increase
In the United States economy, what is the basic measure of money?
A) wealth B) disposable income C) M1 D) commodities
When a temporary beneficial supply shock hits a small open economy, it causes the current account to ________ and investment to ________
A) fall; fall B) rise; remain unchanged C) fall; remain unchanged D) rise; fall