Which of Following Generally Does Not Indicate an Unreasonable Earnings

question 45

Multiple Choice

Which of following generally does not indicate an unreasonable earnings accumulation?

• A)loans to shareholders
• B)expenditure of corporate funds for the personal benefit of the shareholders
• C)planned expansion of business facilities
• D)investments in properties or securities unrelated to the activities of the corporation

---

Definitions:

Product Leadership

A strategy that aims to build a company’s reputation for cutting-edge products and innovation, leading the market through quality and new features.

Operational Excellence

Creates a competitive advantage by holding down costs to provide customers with the lowest-priced products.

Corridor Principle

The idea that opportunities become available to an entrepreneur only after the entrepreneur has started a business.

Windows of Opportunity

Specific time periods during which a certain action can be taken or an event can occur, often leading to new possibilities or success.