Which of the Following Businesses Is Most Likely to Use

question 71

Multiple Choice

Which of the following businesses is most likely to use rate-of-return pricing?

• A)A grocery wholesaler
• B)A glass manufacturer
• C)An independently owned clothing retailer
• D)A construction company

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Retained Earnings

The portion of a business's profits not distributed to shareholders but reinvested in the business or held for future use.

Surplus Cash

Excess funds that a company retains over its necessary working capital and capital expenditure requirements, often available for investment or distribution.

Dividends

A portion of a company's earnings distributed to shareholders, often in the form of cash or additional stock.