Alpha IncSaw an Increase in Profits in the Previous Year Following

question 22

Multiple Choice

Alpha Inc.saw an increase in profits in the previous year following which the management decided to reinvest earnings. These retained earnings will be used to:

• A)meet the company's long-term financial needs.
• B)meet the company's short-term financial needs.
• C)pay the owners a dividend.
• D)increase the liquid assets of the company.

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Definitions:

Injection Mold

A manufacturing process for creating parts by injecting material into a mold to form shapes and designs.

Competitor's Product

A product or service that is offered by one or more companies operating in the same market as another company, serving as alternatives or substitutes.

Operating Cost

The expenses associated with running a business's core operations on a day-to-day basis.

Investment

The allocation of resources, such as capital or time, in expectation of generating future returns.