The Economist Whose Writings in the 1930s Argued That the Cause

question 99

Multiple Choice

The economist whose writings in the 1930s argued that the cause of an economic depression is inadequate spending was:

• A) Herbert Hoover.
• B) John Maynard Keynes.
• C) Andrew Mellon.
• D) Joseph Schumpeter.

Recognize the impact of the 1984 Revised Model Business Corporation Act on corporate asset distributions.

Differentiate between the income statement and balance sheet treatment of various equity transactions.

Comprehend the requirements and implications of current GAAP on earnings per share calculations.

Understand the use of stock options as compensation and their impact on aligning employees' interests with those of owners.

---

Definitions:

Retained Earnings

The portion of a company's profit that is held back and not paid out as dividends, used for reinvestment in the business or debt repayment.

Stock Split

A corporate action that increases the number of shares in a company by issuing more shares to current shareholders proportional to their ownership.

Market Value

The current value of an asset or company based on the price that it can be sold in the open market.

Paid In Surplus

The amount of money paid by investors for shares above their nominal value, representing additional contributed capital.