Which of the Following Is an Example of a Company

question 162

Multiple Choice

Which of the following is an example of a company acting irresponsibly toward its investors?

• A) The board of directors does not declare a dividend
• B) Retained earnings are used to expand research and development instead of paying a dividend
• C) Top management misrepresents the firm's financial situation
• D) The firm does not allow insider trading
• E) The firm uses retained earnings to finance growth

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Definitions:

Generalization

The process or act of formulating general concepts by abstracting common properties of specific instances.

Negative Instances

Examples or cases that do not support a general rule or hypothesis.

Positive Instances

Examples or cases that confirm a particular rule or theory.

Complete Enumeration

A method of solving problems by listing all possible solutions.