Which of the Following Has Been Identified as a Problem

question 12

Multiple Choice

Which of the following has been identified as a problem in owner-manager relationships?

• A) Short-term focus
• B) Risk aversion
• C) Dividend retention
• D) All of the above

---

Definitions:

Retained Earnings

Earnings accumulated by a company thus far, after subtracting any dividends or distributions made to shareholders.

Price-earnings Ratio

A valuation metric for companies, representing the ratio of a company's share price to its per-share earnings.

Earnings per Share

A financial ratio indicating the proportion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Stock Dividend

A form of dividend payment made by a company to its shareholders in the form of additional shares, rather than cash.