A Firm's Internally Generated Funds Are Calculated By

question 41

Multiple Choice

A firm's internally generated funds are calculated by:

• A)Subtracting depreciation from net income
• B)Adding depreciation to net income
• C)Adding dividends to net income
• D)Subtracting dividends from net income plus depreciation

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Definitions:

Employee Incentives

Programs or rewards designed to motivate employees and align their actions with organizational goals.

Economic Darwinism

Differential variations among firms’ organizational architectures, decision processes, or technologies that affect firms’ chances of survival in a competitive environment. Natural selection is the process whereby those differential variations that increase an organization’s chances of survival will tend to be imitated and become more prevalent in other firms. Managers will not imitate management practices of failing firms but those of successful firms.

Inefficient Behavior

Actions or practices that result in a waste of resources or less optimal outcomes.

Accounting Practices

The standard methods and procedures used by companies to record, report, and manage financial information.