What Is the Term for When Controlling Shareholders Pay Themselves

question 3

Multiple Choice

What is the term for when controlling shareholders pay themselves high salaries while not employing or not paying out dividends to minority shareholders?

• A) Quid pro quo
• B) Squeeze-out
• C) Collateral
• D) Liquidity

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Definitions:

Units Sold

The total number of product units a company has sold within a specific period.

Indirect Manufacturing Cost

Costs in producing a product that are not directly traceable to the product, such as maintenance and utilities.

Units Produced

The total number of units of product completed by a company during a given period.

Direct Manufacturing Cost

Costs that are directly associated with the production of goods, including direct materials used and direct labor.