If Profits Are Reinvested in the Corporation, Then

question 41

Multiple Choice

If profits are reinvested in the corporation, then

• A) payments made to bondholders will be less.
• B) there are fewer funds available to distribute to stockholders.
• C) the company will sell more bonds in order to pay dividends to stockholders.
• D) the high profits indicate that common stockholders will get larger dividends than normal.

---

Definitions:

System-actuated Clutch

A clutch mechanism that is engaged or disengaged by an automated system, as opposed to requiring manual actuation.

Freightliner ServicePro

A software application used by Freightliner dealerships for vehicle diagnostics, service information, and maintenance management.

Logged Fault Codes

Recorded error messages generated by a vehicle's onboard diagnostics system, indicating issues for troubleshooting.

AutoShift Pretest

A preliminary assessment or diagnostic procedure for automatic shift systems to ensure they are functioning correctly.