Select the Incorrect Statement Concerning Retained Profits as a Source

question 36

Multiple Choice

Select the incorrect statement concerning retained profits as a source of finance.

• A)Retaining profits has no effect on who controls the business.
• B)The business does not have to wait to receive the funds when using retained profits.
• C)There is more scrutiny when retained profits are used for investment than when shares are issued.
• D)There are no costs associated with retaining profits.

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Definitions:

Visual Field

The entire area that can be seen when the eye is directed forward, including both central and peripheral vision.

Absolute Threshold

The minimum intensity of a stimulus required for it to be detected by the senses at least 50% of the time.

Difference Threshold

The minimum difference in intensity or quantity required for a person to detect a change between two stimuli.

Separation Threshold

The minimum physical distance or difference that can be discerned between two stimuli.