_____ Describes a Situation Where a Primary Subscriber or Purchaser

question 36

Multiple Choice

_____ describes a situation where a primary subscriber or purchaser of a magazine gives it to another person to read or where a magazine is read in public places.

• A)Primary readership
• B)Guaranteed readership
• C)Pass-along readership
• D)Total readership
• E)A place-based medium

Understand the effects of stock dividends on market price, equity, and the number of shares outstanding.

Grasp the accounting treatment and rationale behind stock splits.

Comprehend the capitalization of retained earnings for both small and large stock dividends.

Understand the various types of preferred stock and their features regarding dividends.

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Definitions:

Nonlabor Resources

Inputs used in the production of goods and services that do not involve human labor, such as land, machinery, and materials.

Accounting Profits

The total revenue of a business minus the explicit costs; it is the net income reported on the financial statement.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs.