What is the term for when a company keeps its earnings for capital investment, thereby forgoing the paying of shareholders?
a. distributions
b. dividend payments
c. retained earnings
d. salaries
e. business expenses
c. retained earnings
You might also like to view...
Suppose that last year, the price of strawberries was $2 and the price of milk was $1. This year, the price of milk is $2 and the price of strawberries is $1. Which of the following statements is true?
A) The CPI does not change because the change in the two prices is the same. B) The CPI increases because milk is more expensive. C) The CPI decreases because strawberries are cheaper. D) The CPI might increase or decrease depending on the quantities in the CPI market basket. E) The change in the CPI depends how the market basket changed between the two years.
If producing a good or a service creates pollution, then
A) an unregulated competitive market produces an efficient output. B) the industry's supply curve includes the extra cost of pollution. C) at the unregulated, competitive market equilibrium quantity, marginal social cost is greater than the equilibrium price. D) at the unregulated, competitive market equilibrium quantity, marginal social benefit and marginal social cost are equal. E) at the unregulated, competitive market equilibrium quantity, marginal social benefit is less than the equilibrium price.
In the short run, a decrease in government expenditure ________ real GDP and ________ the price level
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The larger the fraction of an investment financed by borrowing
A) the greater the potential return and the smaller the potential loss on that investment. B) the smaller the potential return and potential loss on that investment. C) the greater the potential return and potential loss on that investment. D) the smaller the potential return and the greater the potential loss on that investment.