All American National Company Earned $240,000 Last Year

question 156

Multiple Choice

All American National Company earned $240,000 last year. The board of directors decided to pay out one-half of the firm's earnings to the stockholders. Before the board's decision, the firm's retained earnings were $740,000. Which of the following statements is true?

• A) Each shareholder will receive more than he or she received last year.
• B) The firm's retained earnings are too high.
• C) The value of the firm's retained earnings is now $860,000.
• D) The value of the firm's retained earnings is now $620,000.
• E) The firm should be more profitable.

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Definitions:

Poverty

The condition of lacking sufficient financial resources or means of subsistence, leading to a lower quality of life and difficulty in meeting basic needs.

Gender Segregation

The practice of separating individuals based on their gender, which can occur in social, educational, or occupational contexts.

Gender-Based Wage Gap

The disparity in earnings between women and men, typically resulting in women earning less than men for the same work or work of equal value.

Labour Force

comprises all the working-age people within an economy who are employed or actively seeking employment.