The Major,overall Argument Against the "Marginal Principle of Retained Earnings

question 109

Multiple Choice

The major,overall argument against the "marginal principle of retained earnings" is:

• A) the uncertainty surrounding capital investment projects.
• B) the lack of ability to adequately measure corporate investment returns.
• C) the diversity of shareholders and their potential investment returns.
• D) the funds must provide a higher rate of return than the shareholder could achieve alone.

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Definitions:

Supply Chain Management

The coordination and management of activities involved in buying, making, and moving a product, from raw material sourcing to production and delivery to the end consumer.

Value Chain Management

The process of managing activities involved in the production of goods and services, from raw materials to the delivery to the end consumer, to maximize value and efficiency.

Strategic Management

The method of creating, executing, and assessing interdisciplinary decisions that help an organization fulfill its goals.

Just-in-time Scheduling

A production strategy that reduces inventory costs by receiving goods only as they are needed for the production process.