Match Each Term with the Appropriate Definition

question 109

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Residual Claim

• A)Stock shares that pay a fixed dividend rate but have no voting rights.
• B)The shares of stock held by stockholders.
• C)Stock that allows owners to be listed among creditors.
• D)This payment raises stockholders' equity.
• E)This payment decreases stockholders' equity.
• F)The shares of stock held by the issuing company.
• G)Earnings per share that reflects treasury and preferred stock.
• H)(Net income less preferred dividends)divided by average stockholders' equity.
• I)This dividend does not reduce stockholders' equity.
• J)Stockholders' entitlement to remaining assets after creditors are repaid.
• K)The additional shares of stock a company can issue beyond what are already issued.
• L)(Net income less preferred dividends)divided by the average number of outstanding common shares.
• M)When a company first starts selling stock to the public.

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Definitions:

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Supply Chain

The network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.

Ethics

The moral standards expected by a society.

Moral Standards

The principles that govern the behavior of individuals and institutions regarding what is right and wrong.