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:

Rival In Consumption

Describes a good or service whose consumption by one individual prevents simultaneous consumption by other individuals, making it exclusive in nature.

Common Resource

A resource like fish stocks, forests, or clean air, that provides users with tangible benefits but is susceptible to overuse and depletion.

Public Good

An offering of products or services to every member of society at no cost, provided by either governmental bodies or private organizations, without aiming for financial gain.

Not Excludable

A characteristic of certain goods where it is not feasible to prevent individuals from consuming the good, such as public parks.