As Can Be Learned from the Chapter, a Redemption Agreement

question 31

Multiple Choice

As can be learned from the chapter, a redemption agreement is the covenant, in which:

• A) The business owns insurance policies on the owners and is obligated to use the proceeds to purchase each stockholder's equity upon his or her death.
• B) Each owner is required to take out insurance on the others and to buy a proportional amount of the deceased's equity.
• C) Business assets, such as inventory or marketable securities, equal to the value of owner's share of the equity in the company will be transferred to relatives upon his or her death.
• D) Internal Revenue Service allows installment tax payments to be received within 2 years after an owner's death.
• E) None of the above.

Identify the tools and categories for editing photos in the Photos app.

Understand file management and organization in Windows 10, including folder structures and file access.

Distinguish between different Windows 10 apps used for media management and playback.

Understand the concept of collections and albums in photo organization.

---

Definitions:

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Payout Ratio

A financial metric that shows the proportion of earnings a company pays to its shareholders in the form of dividends.

Internal Growth Rate

The highest amount of growth achievable for a business without obtaining external financing, based solely on reinvestment of its earnings.

Plowback Ratio

Also known as the retention rate, it measures the proportion of earnings that a company retains and reinvests in its operations rather than paying out as dividends.