Which of the Following Is an Example of a Company

question 162

Multiple Choice

Which of the following is an example of a company acting irresponsibly toward its investors?

• A) The board of directors does not declare a dividend
• B) Retained earnings are used to expand research and development instead of paying a dividend
• C) Top management misrepresents the firm's financial situation
• D) The firm does not allow insider trading
• E) The firm uses retained earnings to finance growth

---

Definitions:

Biweekly Deductions

Regular expenses or amounts taken from a paycheck or budget every two weeks.

Head of Household

A tax filing status for an unmarried individual who pays more than half the cost of maintaining a home for themselves and a qualifying person.

Married Taxpayers

Individuals who are legally married and may choose to file income tax returns jointly or separately.

Dependents

Individuals, typically family members, who rely on another person, usually the primary earner, for financial support.