Which of the following is not true regarding firms use of net assets (assets minus liabilities)?
a. Firms may choose to use the net assets generated by earnings to repurchase common shares.
b. Firms may choose to use the net assets generated by earnings to repurchase common shares which result in cash outflows for a firm, similar to paying a cash dividend.
c. In the case of share repurchases, only those shareholders that choose to sell their shares to the firm receive cash.
d. Some firms pay periodic dividends to the common shareholders out of net assets.
e. Firms typically retain some or all of the net assets generated by earnings, causing net assets to decrease, along with retained earnings, which is the component of shareholders' equity showing the cause of that decrease in net assets.
E
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Answer the following statement true (T) or false (F)
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Background checks may include all of these EXCEPT:
a. verifying past employment b. checking driving records c. obtaining prior health insurance claims information d. confirming the candidate actually has required degrees, licenses, and the like