Under the Equity Method, a Receipt of Cash Dividends by the Investor

question 28

Multiple Choice

Under the equity method, a receipt of cash dividends by the investor would

• A) increase total assets and shareholders' equity.
• B) increase total assets and liabilities.
• C) decrease the investment account.
• D) increase the investment account.

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Definitions:

Direct Price Discrimination

A pricing strategy where a seller charges different prices to different customers for the same product or service, based explicitly on the customer's willingness to pay.

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service in different markets or segments, not directly by customer characteristics.

Decreasing Returns

Refers to a situation in which adding more of a production factor, such as labor or capital, results in progressively smaller increases in output.

Direct Price Discrimination

A pricing strategy where a seller adjusts prices for different customers based on observable personal characteristics or willingness to pay.