GM Decides to Build a New Plant Using Retained Earnings;

question 190

Multiple Choice

GM decides to build a new plant using retained earnings; all of the following are true except

• A) GM's tangible capital will increase as a result.
• B) GM is engaging in saving on behalf of its shareholders.
• C) GM stock appreciates in value.
• D) GM is avoiding experiencing opportunity costs.

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Definitions:

Entrepreneurial Process

A sequence of steps that an individual or group takes to identify a new business opportunity, develop a plan, and then implement the plan to create a new venture.

Innovative Spirit

The inclination or approach to thinking in novel and creative ways to solve problems or generate new opportunities.

Rigid Organizational Structure

An inflexible company framework that has strict rules, procedures, and hierarchies, which can limit adaptability and innovation.

Strategic Assistance

Targeted support provided to organizations or individuals to help them achieve long-term goals and improve their strategic positioning.