If a Firm Incurs a Loss During a Particular Year

question 70

Multiple Choice

If a firm incurs a loss during a particular year, or if the firm had positive net income but paid out dividends more than the net income, what happens to the RE amount?

• A) It increases.
• B) It is unchanged.
• C) It decreases.
• D) It doubles.
• E) It cannot be determined from the information given.

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Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Response

An automatic, innate reaction to a stimulus that does not depend on prior learning or conditioning.

Negative Punishment

A behavioral strategy involving the removal of a desirable stimulus following an undesirable behavior to decrease the likelihood of the behavior's recurrence.

Positive Punishment

A behavior modification technique that involves the addition of an unpleasant stimulus to decrease the likelihood of a behavior reoccurring.