The Only Long-Term Funds That a Company Can Generate Internally

question 25

Multiple Choice

The only long-term funds that a company can generate internally are

• A) dividend yields.
• B) unretained earnings.
• C) retained earnings.
• D) payout earnings.
• E) earnings paid out.

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Definitions:

Debt

Money owed by one party to another under the agreement that it will be repaid.

Lien

A legal right or claim against a property, typically used as security for a debt or loan, ensuring payment.

Satisfy Debt

To fully pay off or settle a debt, meeting the terms agreed upon by the debtor and creditor.

Equipment

Equipment consists of the necessary tools, machinery, devices, or any tangible items required for the specific purpose of executing a task or activity.