Growth companies generally do not pay out a large percentage of their net earnings to investors. Why not?
What will be an ideal response?
Growth companies prefer to reinvest the profits to help the business continue growing rather than pay income out to investors.
You might also like to view...
Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $15,300. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the payment of the invoice within the discount period in its cash payments journal, Farthington would enter:
A. $14,994 in the Accounts Payable Dr. column and $14,994 in the Cash Cr. column. B. $15,300 in the Cash Cr. column and $15,300 in the Accounts Payable Dr. column. C. $15,300 in the Cash Cr. column and $15,300 in the Inventory Dr. column. D. $15,300 in the Inventory Cr. column; $14,994 in the Accounts Payable Dr. column; and $306 in the Inventory Cr. column. E. $15,300 in the Accounts Payable Dr. column; $14,994 in the Cash Cr. column; and $306 in the Inventory Cr. column.
Both stock and bond investments have maturity dates
a. True b. False Indicate whether the statement is true or false
A fixed-term tenancy is created when property is leased for a specified period of time
Indicate whether the statement is true or false
A Communications Controller in SNA is responsible for
a. controlling communications links b. routing data in the network c. connecting directly to the Host Processor d. all of the above