The Retained Earnings of a Corporation Is ________

question 47

Multiple Choice

The retained earnings of a corporation is ________.

• A) internally generated equity that is earned by profitable operations that is not distributed to stockholders
• B) externally generated equity that is contributed by shareholders
• C) externally generated equity that is acquired from banks and other creditors
• D) internally generated equity that is received from employee stock purchases

Recognize the duties and responsibilities of corporate directors and officers.

Understand the mechanisms through which corporations distribute income to shareholders.

Differentiate between types of corporations based on structure, purpose, and ownership.

Learn about the legal consequences of corporate actions that exceed their stated powers (ultra vires acts).

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Definitions:

Mandated Membership

Refers to the requirement for an individual to join a specific group or organization, often as a part of a legal or organizational mandate.

Stable Membership

A characteristic of groups or organizations where the participation or affiliation of its members remains fairly constant over time, contributing to continuity and stability.

Orienting Members

The act of introducing and acclimatizing new participants to the objectives, procedures, and norms of a group.

Group Procedures

Encompasses the methods, rules, and protocols followed by a group to achieve its objectives and manage its operations.