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Statements That Reflect What Should Be or How One Should

question 63

Essay

Statements that reflect what should be or how one should act are called ___________ .​


Definitions:

Dividends

Payments made by a corporation to its shareholder members, typically from profits or reserves.

Retained Earnings

The portion of net income left over after dividends are paid to shareholders, reinvested in the business or used to pay off debt.

Corporate Form

A legal structure for a business recognized as a separate legal entity from its owners, providing limited liability.

Partnership Form

A legal form of business operation between two or more individuals who share management and profits.

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