Which of Following Generally Does Not Indicate an Unreasonable Earnings

question 10

Multiple Choice

Which of following generally does not indicate an unreasonable earnings accumulation?

• A) expenditure of corporate funds for the personal benefit of the shareholders
• B) planned expansion of business facilities
• C) loans to shareholders
• D) investments in properties or securities unrelated to the activities of the corporation

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Definitions:

Hostages

Individuals held captive by others as security for the fulfillment of specific conditions or demands.

Trading Partner

An entity or country that engages in commerce or trade with another, often under agreed terms or through treaties.

Held Up

Delayed or stopped by something or someone, causing a pause in progress or movement.

Average Variable Costs

The total variable costs (costs that change with output level) divided by the quantity of output produced.