Which of the Following Would Immediately Cause a Change in a Corporation's

question 30

Multiple Choice

Which of the following would immediately cause a change in a corporation's retained earnings?

• A)Net income or net loss and declaration of dividends.
• B)Declaration of dividends and issuance of common stock to new stockholders.
• C)Net income and issuance of stock to new stockholders.
• D)Declaration of dividends and purchase of new machinery.

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Definitions:

Full Employment

A situation in an economy in which all who are willing and able to work at prevailing wage rates are employed.

Production Possibility Frontier

A graphical representation showing the maximum combination of goods and services that can be produced with available resources and technology.

Resources Scarcity

The economic condition of limited natural resources available to meet the unlimited wants and needs of people.

Downward Slope

A graphical representation indicating a decrease or decline in a variable as another variable increases, often seen in demand curves.