Which of the Following Would Not Affect a Company's Net

question 206

Multiple Choice

Which of the following would not affect a company's net income?

• A)A change in the company's income taxes
• B)Changing the selling price of a company's product
• C)Paying a dividend to stockholders
• D)Advertising a new product

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Definitions:

Apparent Authority

A situation where a third party reasonably believes that an agent has the authority to act on behalf of a principal, even if the agent does not have such authority.

Principal

In a financial context, the principal is the initial amount of money borrowed or invested, excluding any interest or profit. In an educational setting, it refers to the head of a school.

Agent

An individual authorized to act on behalf of another, often in business or legal matters.

Manifestations

Observable expressions or indications of a condition, disease, or the existence of a particular fact.