The Return to the Two Groups Who Finance the Business

question 42

Multiple Choice

The return to the two groups who finance the business is also the numerator in the return on assets ratio. These are:

• A)common dividends and preferred dividends.
• B)interest and net income.
• C)net income and preferred dividends.
• D)none of the above.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to harmonize the law of sales and other commercial transactions.

Merchant

A person or company involved in wholesale or retail trade, especially one dealing with tangible goods.

Written Offer

A formal proposal or bid presented in written form, detailing the terms under which the writer is willing to engage in a contract or agreement.

Requirements Contract

A contract in which the seller agrees to supply all of the buyer's needs for a particular good or service over a specified period.