Which of the Following Is the Basic Formula for Earnings

question 21

Multiple Choice

Which of the following is the basic formula for earnings per share?

• A)Net income ÷ Average number of shares of common shares outstanding
• B)Net income ÷ Ending number of shares of common shares outstanding
• C)Net income ÷ Beginning number of shares of common shares outstanding
• D)Net income ÷ Total number of shares of common shares outstanding

---

Definitions:

Planned Obsolescence

A business strategy in which the obsolescence of a product is planned and built into it from its conception, ensuring that consumers will need to purchase new products.

Ethical Issue

A situation or problem that requires individuals or organizations to choose between alternatives that must be evaluated as right or wrong, ethical or unethical.

Updated Product

A product that has been improved or modified with new features or designs to enhance its performance or appeal.

Environmentally Friendly

Practices or products that have a minimal impact on the environment, often focusing on reducing pollution and conserving resources.