The Portion of a Corporation's Net Income That Is Paid

question 39

Multiple Choice

The portion of a corporation's net income that is paid out to the stockholders, instead of being retained in the business, is referred to as:

• A) gross income.
• B) earnings before interest and taxes.
• C) interest expense.
• D) dividends.

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Definitions:

Revenues

The total income generated by a company from its business operations, such as sales of goods or services, before any costs or expenses are deducted.

Cut the Price

To reduce the selling price of a product or service.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good changes in response to a change in its price.

Close Substitutes

Products or services that can be used in place of one another with little difference in satisfaction for the consumer, leading to a high cross-elasticity of demand.