The First Step in Retention Planning Involves

question 33

Multiple Choice

The first step in retention planning involves:

• A) collating JDI and other survey findings.
• B) evaluating current retention plans.
• C) setting clear goals for reduced turnover.
• D) creating individual strategies for the goals.
• E) budgeting to track money spent on the retention plan.

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Definitions:

Retained Earnings

The part of a company's earnings that is not distributed as dividends to its shareholders but is instead reinvested or saved.

Dividend Cut

A reduction in the dividend amount paid by a corporation to its shareholders, often due to financial difficulties or the need to conserve cash.

Bird in the Hand Theory

A theory that suggests investors prefer the certainty of dividend payments to the possibility of much higher future capital gains.

Dividend Distribution

The method by which a corporation's earnings are distributed among its shareholders in the form of dividends.