Financial Problems Faced by Many Cities Can Be Traced in Part

question 10

Multiple Choice

Financial problems faced by many cities can be traced in part to

• A) a shrinking labor force.
• B) city politicians who constantly raise taxes.
• C) the taxing of suburbanites who work in the city.
• D) unwillingness of politicians to raise taxes and cut services.

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Definitions:

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Common Stock

The most prevalent form of equity ownership, representing shares in the ownership of a company.

Dividend Decision

The decision by management regarding the portion of earnings paid to shareholders as dividends. The alternative is to retain the money, investing it in the company for future growth.

Cash Dividends

Distributions made to shareholders by a company, often in the form of profit sharing.