To Stockholders,the Larger the Net Income,the Greater the Likelihood Of

question 63

Multiple Choice

To stockholders,the larger the net income,the greater the likelihood of:

• A)dividends.
• B)the company will purchase treasury stock.
• C)the stock price decreasing.
• D)all of the above.

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Definitions:

Utilities

Essential services provided to the public, including electricity, gas, water, and sewage systems.

Break-even Point

The point at which total costs and total revenue are equal, meaning no net loss or gain is incurred by the business.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Unit Price

The cost of a single unit of product or measure, which enables comparison of costs among different sizes or types of packages.