If a Corporation Earns a Profit, How Do Owners of the Firm

question 221

Multiple Choice

If a corporation earns a profit, how do owners of the firm share in the profit?

• A)through coupon payments on that firm's bonds
• B)through dividend payments on shares of that firm's stock
• C)by selling any bonds or stocks owned and realizing a capital gain
• D)by raising the interest rate on bonds

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Definitions:

Improve

To make or become better; to enhance the quality, value, or performance of something.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior occurring again in the future.

Negative Reinforcer

An unpleasant or adverse stimulus that, when removed after a behavior, increases the likelihood of that behavior being repeated.

Mother

A female parental figure who may give birth to, adopt, or rear a child in the role of providing care, nurture, and protection.