Which of the Following Would Be a Reason for a Company

question 113

Multiple Choice

Which of the following would be a reason for a company to appropriate a portion of retained earnings?

• A) To ensure that the business does not take on too much debt
• B) To increase the amount of earnings available for dividends
• C) To help the company control levels of operating expenses
• D) To limit the amount of retained earnings available for dividends, in order to retain sufficient funds for growth

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Definitions:

Disinterested

Having no bias or partiality; impartial.

Deficit

A shortfall or deficiency, often referring to a lack in quantity or quality of a desired or required resource or attribute.

Conventional

Based on or in accordance with what is generally done or believed; traditional and lacking in spontaneity or individuality.

Acculturation

The degree to which people from a certain cultural group display the beliefs and practices of that group.