The Pursuit of Profits Is How a Business Differs from Organizations

question 74

True/False

The pursuit of profits is how a business differs from organizations such as public universities,public hospitals,and government agencies.

---

Definitions:

Dividend Payout Ratio

This is a financial ratio that measures the percentage of earnings paid to shareholders in the form of dividends.

Net Income

The total profit or loss of a company after all revenues, costs, expenses, and taxes have been accounted for.

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Return On Total Assets

A profitability ratio measuring net income produced by total assets during a period by comparing net income to the average total assets.