After Earning $50 Million in Net Income, Marshall Manufacturing Distributed

question 34

Multiple Choice

After earning $50 million in net income, Marshall Manufacturing distributed $15 million in dividends to their stockholders. Marshall's board of directors decided to invest the remaining $35 million back into the business. This $35 million reinvestment of profits represents

• A) a trust fund.
• B) retained earnings.
• C) preferred capital.
• D) mutual funds.

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Definitions:

Ecologically Sustainable

Practices or activities that meet current needs without compromising the ability of future generations to meet their own needs, preserving natural resources and ecosystems.

Neolithic Revolution

Marks the transition from nomadic hunting and gathering lifestyles to settled farming and agriculture, leading to significant changes in human society and environment.

Consequences

The outcomes, effects, or results that naturally follow from an action or condition, often used in the context of discussing the aftermath of decisions.

Informal Economy

The part of an economy that is neither taxed nor monitored by any form of government, often characterized by cash transactions and unregulated employment.