Managers in All Types of Businesses Must Address the Central

question 2

Multiple Choice

Managers in all types of businesses must address the central strategic question:

• A) Where are we now?
• B) Where do we want to go from here?
• C) How are we going to get there?
• D) When will we know we are there?
• E) All of these

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business.

Earnings Per Share

A financial metric calculated by dividing a company's net income by the number of its outstanding shares.

Dividend Per Share

The amount of dividend that is paid out for each share of stock held by shareholders.