A firm’s____ are its tangible and intangible assets a firm uses to choose and implement its strategies.
a. Resources
b. Dynamic capabilities
c. Core competencies
d. Net worth
e. None of the above
Answer: a. Resources
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Ponzi Corporation Ponzi Corporation reported the following information for the year ended December 31, 2012. Net income $100,000 Dividends 6,000 Retained earnings at December 31, 2012 $120,000 Refer to the information provided above for Ponzi Corporation. What was the economic effect of the payment of Ponzi's dividends?
A) The dividend reduced net income for 2012. B) The dividend should be added to net income if the company's accounting equation is in balance. C) The dividend reduced total retained earnings. D) The dividends must be paid whenever Ponzi Corporation reports net income.
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What will be an ideal response?