The Declaration and Payment of a Dividend Will

question 65

Multiple Choice

The declaration and payment of a dividend will

• A) decrease net income.
• B) increase liabilities.
• C) not affect total assets.
• D) decrease stockholders' equity.

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Definitions:

Diseconomies of Scale

The condition when a company grows so large that the costs per unit increase, causing a decrease in efficiency.

Coordinating

The organization and alignment of activities, processes, or efforts to ensure efficient and effective achievement of goals or outcomes.

Managing

The process of planning, organizing, leading, and controlling resources to achieve specific goals.

Long-Run Average Total Cost Curve

A curve that shows the lowest possible cost of producing different levels of output when all factors of production, including capital, can be varied.