Why Is a Company Required to Retain a Specific Part

question 50

Multiple Choice

Why is a company required to retain a specific part of its capital?

• A)Protect the company's creditors
• B)Enable the payment of future dividends
• C)Facilitate a non-current asset replacement plan
• D)Use as security for future loans

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Definitions:

Achievement Motivation

The drive or desire for success and accomplishment, often pushing individuals to attain higher levels of performance.

Self-Verification

The theory suggesting individuals seek to confirm their self-concept by encouraging others to see them as they see themselves.

Self-Esteem

A person's personal assessment of their value, incorporating their feelings and convictions about their own identity.

Disadvantaged Groups

Communities or populations that face social, economic, or political barriers that restrict access to resources or opportunities available to other groups.