Which of the Following Would Be a Reason for a Company

question 66

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:

Professional Athletes

Individuals who earn their living by competing in sports at the highest level of athletic performance.

OxyContin

A brand name for a time-release formula of oxycodone, a powerful prescription opioid pain medication that can be highly addictive.

Painkillers

Medications used to reduce or alleviate pain. These can range from over-the-counter options like aspirin to prescription opioids.

Drug Users

Individuals who consume illegal drugs or misuse prescription medications.