A Company Is Typically Considered as A(n)________ When It Uses

question 22

Multiple Choice

A company is typically considered as a(n) ________ when it uses a supplier's component in its own finished product.

• A)broker
• B)distributor
• C)original equipment manufacturer
• D)value-added seller

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Definitions:

Fixed Assets

Long-term tangible assets used in the operations of a business that are not expected to be converted into cash in the near future.

Sales Increase

A rise in the volume or value of product units or services sold by a company, indicating growth in business activity.

Retention Ratio

The proportion of net income that is retained in the business rather than distributed to shareholders as dividends.

Dividend Payout Ratio

A financial indicator showing the proportion of a company's profits distributed to its shareholders as dividends.