Which of the Following Will Cause Net Income to Decrease

question 132

Multiple Choice

Which of the following will cause net income to decrease for the following year?

• A) The accumulation of more long-term debt by a firm.
• B) An increase in the amount of dividends paid per share.
• C) A reduction in tax rates.
• D) An increase in profit margins.
• E) A reduction in depreciation expense.

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Definitions:

Administered Vertical Marketing System

A coordinated marketing system among participants at different levels of the supply chain, managed by one dominant member without formal ownership.

Corporate Vertical Marketing System

A coordinated marketing strategy where a single company controls multiple levels of production, distribution, and sales within its supply chain.

Contractual Vertical System

A formal arrangement between firms at different levels of the supply chain, governed by a contract, to coordinate their activities.

Marketing Channel

A series of steps or operations needed to change the ownership of items from the location of creation to the location of use.