A Transfer Payment Is

question 94

Multiple Choice

A transfer payment is

• A) a bonus to get a worker to accept a transfer.
• B) a cash payment made by the government to people who do not supply goods, services or labor in exchange for the payment.
• C) a cash payment for transferring a good from one person to another.
• D) an in kind payment for working "off the books."

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Definitions:

Par Common Stock

The nominal or face value of common stock as specified in the corporate charter, which bears no direct relation to its market value.

Purchase Price

The amount of money paid to acquire a good, service, or asset.

Stock Split

An action by a company to divide its existing shares into multiple shares to boost the liquidity of the shares, although not affecting the company's overall market capitalization.

Retained Earnings

The portion of a company's profits not distributed as dividends to its shareholders but kept in the company to reinvest in its core business or to pay debt.