Retained Earnings Is

question 45

Multiple Choice

Retained earnings is

• A)the stockholders' claim on total assets.
• B)equal to cash.
• C)equal to revenues.
• D)the amount of net income kept in the corporation for future use.

Understand the relationship between total product, marginal product, and the stages of production.

Comprehend the concept of fixed inputs in production and identify examples.

Differentiate between marginal cost and total variable cost, and calculate total variable cost.

Explain the impact of increasing and diminishing marginal returns on marginal cost.

---

Definitions:

American Put Option

A type of options contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price before or at a specified expiration date.

Market Interest Rates

The prevailing rate of interest available in the marketplace on investments and borrowing.

Exercise Price

The price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.