Garrison Industries Garrison Industries Began Operations on January 2,2014,with an Investment

question 47

Multiple Choice

Garrison Industries Garrison Industries began operations on January 2,2014,with an investment of $50,000 by each of its two stockholders.Net income for its first year of business was $240,000.Garrison Industries paid a total of $100,000 in dividends to its stockholders during the year.
Read the information about Garrison Industries.What is the company's retained earnings balance at December 31,2014?

• A)$140,000
• B)$190,000
• C)$240,000
• D)$340,000

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Definitions:

Economies of Scale

Economies of scale are cost advantages that entities achieve due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Elastic Market Demand

Describes how sensitive the overall market demand for a good or service is to price changes.

Bureaucratic Decision-Making

The process where decisions are made within a hierarchical organizational structure, often involving formal rules and regulations.

Industry Presence

The extent of a company's or sector's footprint within a specific market or industry, measured through its market share, influence, or production capacity.