Retained Earnings Are Occasionally Restricted

question 12

Multiple Choice

Retained earnings are occasionally restricted

• A)to set aside cash for dividends.
• B)to keep the legal capital associated with paid-in capital intact.
• C)due to contractual loan restrictions.
• D)if preferred dividends are in arrears.

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Definitions:

Replacement Planning

The process of identifying key roles within an organization and preparing suitable employees to fill these positions in the event of employee turnover.

HR Planning

A process undertaken by organizations to ensure that they have the right number and type of people, at the right time and place, capable of effectively and efficiently completing tasks that will help the organization achieve its overall objectives.

Succession Management Programs

Initiatives designed to identify, develop, and prepare individuals within an organization to fill key leadership positions in the future.

Environmental Demands

The various external factors, conditions, and requirements that an organization needs to address and adapt to in order to operate effectively.