Read the Four Statements Below

question 118

Multiple Choice

Read the four statements below.Which is NOT a reason given in the text that a socialist revolution never took place in capitalist societies as Marx predicted?

• A)Stock places ownership of companies in the hands of tens of millions of people.
• B)Living standards for the majority have gone up.
• C)Wealth is no longer concentrated in the hands of a few.
• D)The law affords workers far more legal protections.

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Definitions:

Debt/Equity Ratio

A ratio demonstrating the comparative levels of shareholders' equity and borrowed funds deployed to finance company assets.

Residual Dividend Policy

A strategy where dividends paid to shareholders are based on earnings left over after all operational and project expenses are covered.

After-Tax Earnings

The amount of net income remaining after all taxes have been deducted, reflecting the company's profitability after fulfilling tax obligations.

Stock Split

A corporate action that increases the number of shares outstanding, reducing the price per share without changing the company's market capitalization.