If a Corporation Retains All Its Profits and Distributes None

question 64

Multiple Choice

If a corporation retains all its profits and distributes none of the profit to owners, how can owners benefit?

• A)If the retained earnings are expected to create future profits, the market price of the firm's stock will increase and create a capital gain for stockholders if the stock is sold.
• B)Shares of stock can be converted into bonds so stockholders will be able to earn coupon payments.
• C)Owners will only benefit if some profits are paid out in the form of dividends.
• D)Owners will benefit by changing the board of directors.

Appreciate the context of special privileges and defenses in defamation law, including conditional privileges and truth as a defense.

Examine the legal considerations in acts that may constitute conversion and their implications for the rightful owner.

Understand the basic principles and obligations under premises liability cases.

Recognize the differences between licensees, invitees, and trespassers concerning property law.

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Definitions:

Female Prostitution

The act of engaging in sexual activities for payment primarily by women.

Market Share

The area of a market that is managed by a particular company or product.

Sales Revenues

The total amount of money generated by the sale of goods or services before any costs or expenses are deducted.

Unit Sales

The total number of individual items sold over a defined period, used as a measure of product performance.