Which of the Following Is a Reason Why Some Firms

question 57

Multiple Choice

Which of the following is a reason why some firms do not use commission pay?

• A) It gives workers incentive to produce more.
• B) It increases firm profits.
• C) It is difficult to measure output and attribute output to a particular worker.
• D) The best workers stay and less productive workers leave.

Analyze how dividend declarations and payments affect stockholders' equity.

Understand the significance of dividend dates such as declaration date, date of record, and payment date.

Recognize the accounting treatments for different types of dividends.

Calculate the dividends distributed to preferred and common shareholders under various scenarios.

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Definitions:

Liabilities

Monetary liabilities or dues that a company or person has to pay back to lenders.

Equity

The value that would be returned to a company's shareholders if all of the assets were liquidated and all of the debts were paid off.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.

Balance Sheet

An economic report indicating a company's possessions, financial responsibilities, and the value belonging to shareholders at a certain instance.