Which One of the Following Is a Payment by a Firm

question 65

Multiple Choice

Which one of the following is a payment by a firm to its shareholders from any source other than current or accumulated retained earnings?

• A)Interest
• B)Distribution
• C)Retained earnings
• D)Dividend
• E)Stock repurchase

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Definitions:

Equality-Efficiency Trade-Off

The decrease in economic efficiency that may accompany a decrease in income inequality; the presumption that some income inequality is required to achieve economic efficiency.

Incentives To Work

Factors or motivations that encourage individuals to perform tasks or engage in employment.

Income-Maintenance Program

Governmental policies designed to provide financial support to individuals or families to ensure a basic level of income and prevent poverty.

Social Insurance

Government-provided insurance, typically funded through taxation, that covers individuals against economic risks (e.g., unemployment, disability).