The Directors of a Company Meet to Decide If They

question 79

Multiple Choice

The directors of a company meet to decide if they should start a new product line or not.This is an example of a ________ decision.

• A) operational
• B) strategic
• C) managerial
• D) procedural

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Definitions:

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities.

Changes in Equity

Movements in the value of an entity's equity over a period due to profits, losses, contributions from or distributions to owners.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but retained by the company for reinvestment.

Dividends Declared

The announcement by a company's board of directors of the intention to pay a dividend to shareholders, indicating the amount and payment date.