Which Is a Major Reason for the Decline in the Number

question 6

Multiple Choice

Which is a major reason for the decline in the number of rail companies?

• A) mergers and unification occurring in the railroad industry
• B) government restrictions on rail ownership
• C) loss of business to other modes
• D) desire of management to invest in other areas of business

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Definitions:

Retained Earnings

The portion of a company's profits that are kept and not paid out as dividends to shareholders, often reinvested into the business.

Special Dividend

A one-time distribution of earnings to shareholders, outside of the regular dividend schedule.

Stock Repurchase

A decision by a company to buy back its own shares from the marketplace, potentially to increase the value of remaining shares.

Outstanding Shares

Outstanding shares refer to the total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.