The Retention Ratio Is

question 21

Multiple Choice

The retention ratio is:

• A) equal to net income divided by the change in total equity.
• B) the percentage of net income available to the firm to fund future growth.
• C) equal to one minus the asset turnover ratio.
• D) the change in retained earnings divided by the dividends paid.
• E) the dollar increase in net income divided by the dollar increase in sales.
• F) None of the above.

---

Definitions:

Contributory Negligence

Contributory Negligence is a legal defense in tort law where the plaintiff's own negligence played a role in causing the harm and can limit or bar recovery from the defendant.

Assumption of Risk

A legal principle that a person who voluntarily engages in an activity is aware of and accepts the hazards associated with that activity.

Premises Liability

A legal principle that holds property owners and residents liable for accidents and injuries that occur on their property, depending on the legal status of the visitor.

Pure Contributory Negligence

A legal doctrine where a damaged party cannot recover any damages if they are found to be even slightly at fault.