Earnings Per Share

question 74

Multiple Choice

Earnings per share

• A)will increase if net income increases and number of shares remains constant.
• B)will increase if net income decreases and number of shares remains constant.
• C)is number of shares divided by net income.
• D)is the amount of money that goes into retained earnings on a per share basis.
• E)None of the above.

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Definitions:

Special-Interest Effect

Any political outcome in which a small group (“special interest”) gains substantially at the expense of a much larger number of persons who each individually suffers a small loss.

Government Policy

refers to the actions taken by a government to address issues or achieve goals, which may involve regulations, laws, or spending priorities.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services.

Majority Voting

A decision-making process whereby a decision is made based on the preference of more than half of the members voting.