If Neofuture Corp.is a New,profitable Company,_____

question 36

Multiple Choice

If Neofuture Corp.is a new,profitable company,_____

• A)it must pay dividends to its stockholders.
• B)its entrepreneurs will not get any "sweat equity."
• C)after-tax profits are either paid as dividends or reinvested in the corporation.
• D)it is contractually obligated to retain a portion of its earnings.
• E)it typically uses the profits to buy back its own stock from the underwriter.

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Definitions:

Economic Organization

The structured and systematic arrangement of economic activities and resource allocations within a society or among participants in the economy.

Private Ownership

The legal possession of property by non-governmental entities or individuals, allowing control over its use and the benefits it generates.

Capitalism

An economic system in which productive resources are owned privately and goods and resources are allocated through market prices.

Exchange

The act of giving one thing and receiving another (especially of the same type or value) in return, often referring to the trading of goods, services, or currencies.