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

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Definitions:

Impossibility Theorem

A principle, often associated with Arrow's impossibility theorem, indicating that no voting system can convert the ranked preferences of individuals into a community-wide ranking while also meeting a set of reasonable criteria.

Individual Preferences

The specific likes, dislikes, desires, and priorities that guide an individual's choices or decisions.

Voting Scheme

A system or method used to facilitate and process votes, typically within the context of elections, decision-making processes, or preference assessments.

Logrolling

The practice of exchanging favors, especially in politics, by reciprocal voting for each other's proposed legislation.