Soccer Starz, Inc

question 65

Multiple Choice

Soccer Starz, Inc. started the year with a balance of retained earnings of $25 million and ended the year with retained earnings of $32 million. The company paid dividends of $2 million to the preferred stock holders and $6 million to common stock holders. What was Soccer Starz's net income for the year?

• A) $7 million
• B) $15 million
• C) $40 million
• D) $49 million

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Definitions:

Minimal Communication

A communication approach that involves the least amount of information necessary to convey an idea effectively.

Ultimate Responsibility

The highest level of accountability for the outcomes of decisions and actions within an organization or project.

Departmentalization Scheme

The method an organization uses to segment its operations into specialized units or departments based on function, product, geography, or process.