Consumers in Delta City Form a Business Organization to Provide

question 42

Multiple Choice

Consumers in Delta City form a business organization to provide, without profit, an economic service to its members. This is

• A) a business trust.
• B) a cooperative.
• C) a corporation.
• D) a joint stock company.

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Definitions:

Book Value Per Share

A measure used to gauge a company's financial health, calculated by dividing total shareholder's equity minus preferred equity by the number of outstanding common shares.

Stock Dividend

A payment made to shareholders in the form of additional shares, rather than cash, reflecting the company's decision to reinvest the profit.

Liability

A company's legal financial debts or obligations that arise during the course of business operations.

Retained Earnings

Profits that a company has decided to keep and reinvest in the business rather than distribute to shareholders.