The Bates Lighting Company Has Two Divisions, Business and Consumer

question 63

Multiple Choice

The Bates Lighting Company has two divisions, business and consumer products. Because of poor profits, it may downsize the consumer division. This could mean loss of jobs for people involved with the marketing of:

• A) overhead lighting for hospital operating rooms.
• B) flashlights for buildings that lose power.
• C) designer lighting for furniture showrooms.
• D) desk lamps for offices or college dorms.
• E) street lights.

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Definitions:

Net Income

The amount of profit a company generates after deducting all its costs, expenses, taxes, and interest from its total revenue.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Payout Ratio

A financial metric indicating the percentage of earnings paid to shareholders in the form of dividends, reflecting a company's dividend sustainability.

Dividends

Distributions from a company to its shareholders, typically sourced from the firm's earnings.