The "Marginal Principle of Retained Earnings" Holds That Corporate Investment

question 17

True/False

The "marginal principle of retained earnings" holds that corporate investment should provide a return equal to or higher than that a shareholder could earn elsewhere.

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Definitions:

Teller's Checks

A bank-issued check drawn on the bank's own funds and signed by a teller, typically used when someone needs to guarantee payment.

Refuse

To decline to accept or to reject.

Non-Local Check

A bank check drawn on any bank that is not local to the area where it is being presented for payment.

Depositary Bank

A financial institution that holds assets or securities for safekeeping on behalf of depositors.