Which Three of the Following Statements Correctly Describe the Situation

question 46

Multiple Choice

Which three of the following statements correctly describe the situation regarding retained earnings?

• A) They should be seen as belonging to shareholders.
• B) They are 'costless'.
• C) They are the most important source of long- term finance for most corporations.
• D) They are part of the equity of the firm.

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Definitions:

Ideal Of Pluralism

The belief or doctrine that a society should accommodate and embrace a diversity of cultural, religious, and ethnic backgrounds within its political and social institutions.

Governmental Influence

The extent to which government actions or policies affect the decisions and actions of individuals or organizations.

Compete

To strive against others for the purpose of achieving something, such as a prize or a higher level of achievement, often under conditions of equal footing and rules.

Partnership

A legal form of business operation between two or more individuals who share management and profits.