The Reason a Corporation Has Retained Earnings Is to

question 96

Multiple Choice

The reason a corporation has retained earnings is to

• A) pay unemployment taxes.
• B) make investments that will increase the value of the stock.
• C) avoid the double taxation of corporate profits.
• D) be able to make unemployment payments.

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Definitions:

Clause

A group of words in a sentence that contains a subject and a predicate, either of which can be independent or dependent.

Predicates

The part of a sentence or clause expressing what is said about the subject; in logic, it refers to the attribute that is affirmed or denied of the subject.

Nonrestrictive Clause

A clause that provides additional information about a noun without limiting or defining it, often set off from the rest of the sentence by commas.

Reference

The act of mentioning something or citing a source as evidence.