_________Are Earnings Distributed to Shareholders by a Corporation

question 3

Multiple Choice

_________are earnings distributed to shareholders by a corporation.

• A)dividends
• B)distributions
• C)earned income
• D)stock

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Definitions:

Financing Decision

The process of making choices about obtaining capital and using it to fund business activities, including investments and operations.

Capital Budgeting Decision

A capital budgeting decision involves the process of deciding whether to pursue a long-term investment or project based on its potential financial returns.

Lease Financing

A method of financing where a firm obtains the use of certain assets through leasing, avoiding the need to invest capital in them.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or investment.