The Net Income That Firm Earns Can Either Be Paid

question 52

Multiple Choice

The net income that firm earns can either be paid out to shareholders as __________ or can be reinvested in the company as __________.

• A) interest; additional paid-in capital
• B) dividends; retained earnings
• C) shares; capital stock.
• D) capital gains; additional paid-in capital
• E) interest; retained earnings

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Definitions:

External Proposals

proposals submitted from outside an organization, typically by vendors or partners, suggesting a project or service to address the organization’s needs.

Sales Proposals

Documents or presentations that outline an offer for a product or service, including details about benefits, pricing, and terms, intended to persuade potential customers.

Internal Proposals

These are suggestions or plans submitted within an organization aiming to initiate change or improvement.

Investment Proposals

Documents or presentations that outline the details and potential benefits of investing in a particular project or venture.