Conserving the Firm's Earning Power and Assets by Reducing the Threat

question 232

Multiple Choice

Conserving the firm's earning power and assets by reducing the threat of losses due to uncontrollable events is ________ management.

• A) disaster
• B) financial
• C) risk
• D) insurance
• E) contingency

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Definitions:

Treasury Stock

Refers to shares that were once part of the outstanding shares and have been bought back by the company.

Cash Dividend

Cash payments issued to a certain category of stockholders out of a firm's profits, as resolved by the board of directors.

Shares Issued

The total number of shares that have been allocated and distributed to shareholders by a company, representing ownership in the company.

Stock Split

A corporate action that increases the number of shares in a company by dividing each share, which in turn reduces its price, making the stock more accessible to investors.