Alpha Inc Saw an Increase in Profits in the Previous Year

question 105

Multiple Choice

Alpha Inc. saw an increase in profits in the previous year following which the management decided to reinvest its earnings. These retained earnings will be used to:

• A) meet the company's long-term financial needs.
• B) meet the company's short-term financial needs.
• C) pay the owners a dividend.
• D) increase the liquid assets of the company.

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Definitions:

Vacuum Cleaners

Electrical appliances used for cleaning floors and other surfaces by suctioning up dust and dirt.

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890 which prohibits monopolistic practices and promotes competition.

Horizontal Price Fixing

Horizontal price fixing is an unlawful practice where businesses at the same level of the market agree to set prices at a certain level, reducing competition.

Raw Milk

Milk in its natural, unprocessed state, not pasteurized or homogenized, typically sourced directly from dairy farms.