All of the Following Uses of Annual Earnings Would Contribute

question 71

Multiple Choice

All of the following uses of annual earnings would contribute toward an increase in shareholder value except:

• A) repurchase shares
• B) invest in projects with high profit potential
• C) payoff debt
• D) all of these increase shareholder value

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Definitions:

Per Unit Tax

A tax levied on goods that is fixed in amount for each unit produced or sold.

Consumer Surplus

The gap in the total funds consumers are willing and financially prepared to allocate for a good or service, versus the funds actually allocated.

Producer Surplus

The difference between the amount producers are willing to supply a good for and the actual amount they receive when the good is sold.

Producer Surplus

The gap highlighting the difference between the initial asking price by sellers for goods or services and the ultimately received price.