Merchant Companies

question 41

Multiple Choice

Merchant companies

• A) sell goods and services on consignment.
• B) act as clearing houses or exchanges.
• C) are a throwback to the 1800s.
• D) own the goods they sell.
• E) sell goods only to government.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, typically derived from profit.

Statement of Stockholder's Equity

A financial statement that shows changes in the value of a company's equity over a specific period, including shares issued and dividends paid.

Common Stock

Equity securities that represent ownership in a corporation, providing voting rights and potential dividends to shareholders.

Retained Earnings

The accumulated portion of profits that a company decides to keep and reinvest in the business, after dividends are paid out to shareholders.