GM Decides to Build a New Plant Using Retained Earnings

question 57

Multiple Choice

GM decides to build a new plant using retained earnings. All of the following are true except

• A) GM's tangible capital will increase as a result.
• B) GM is engaging in saving on behalf of its shareholders.
• C) GM stock appreciates in value.
• D) GM is avoiding experiencing opportunity costs.

---

Definitions:

1980s

The decade spanning from January 1, 1980, to December 31, 1989, characterized by significant political, technological, and cultural changes worldwide.

Life Expectancy

The average period that an individual is expected to live, based on statistical averages of age, nationality, and other factors.

Census Data

Statistical information collected through the systematic enumeration of a population, including demographics, employment, and housing.

60s Scoop

Refers to the practice, primarily in Canada during the 1960s, of removing Indigenous children from their families and communities for placement in foster homes or adoption by primarily white families.