A Cash Payment Made by a Firm to Its Owners

question 29

Multiple Choice

A cash payment made by a firm to its owners in the normal course of business is called a:

• A)share repurchase.
• B)liquidating dividend.
• C)regular cash dividend.
• D)special dividend.
• E)extra cash dividend.

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Definitions:

Profit-Oriented

Focused on achieving financial gain or maximizing profits as the primary goal of business operations.

Cost-Plus-Fixed-Fee Pricing

A pricing strategy where the selling price is determined by adding a fixed fee to the cost of the product or service, covering both the cost and a guaranteed profit margin.

Target Return

A specific profit objective set by a business, often used to guide pricing and investment strategies to meet financial goals.

Cost-Plus-Percentage-Of-Cost Pricing

A pricing method where the retail price is set by adding a predetermined percentage increase to the cost of the product.