By Subtracting Dividends Paid to Shareholders from the Net Income

question 176

Multiple Choice

By subtracting dividends paid to shareholders from the net income, which of the following are managers able to calculate?

• A) a change in the cash balance in the firm's bank account
• B) a change in retained earnings
• C) a decrease in profit margins
• D) an increase in net income

Understand the concept of piercing the corporate veil and the circumstances under which it may occur.

Familiarize with the terms and legal implications surrounding non-profit corporations and their uniqueness.

Understand the typical terms and conditions under which corporate directors serve.

Grasp the concept of quorum requirements for director meetings.

---

Definitions:

Drive-Reduction

A theory in psychology that posits that behavior is motivated by the need to reduce internal drives or tensions, such as hunger or thirst.

Internal Physical States

Internal Physical States refer to the physiological conditions or feelings within the body, such as hunger, pain, or fatigue, that can influence emotions and behavior.

Arousal

A state of alertness and mental and physical activation.

Incentive

An external stimulus that motivates behavior (for example, money or fame).