Corporations Are Likely to Continue to Implement Preferential Policies for Minorities

question 29

Multiple Choice

Corporations are likely to continue to implement preferential policies for minorities because:

• A)a diverse labor force is essential for success in a diverse society.
• B)the government offers tax incentives for participation.
• C)most CEOs are in favor of affirmative action.
• D)lawsuits involving discriminatory practices are on the rise.

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Definitions:

External Financing Needed

The amount of funding a company must seek from outside sources to finance its business operations and growth ambitions beyond what it can generate internally.

Internal Rate of Growth

The maximum rate of growth a firm can achieve without resorting to external financing, relying solely on its own resources.

Retained Earnings

The portion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Sustainable Growth Rate

The maximum rate at which a company can grow its sales, earnings, and dividends without increasing its financial leverage, relying solely on its internal resources.