All American National Company earned 240,000 last year. The board of directors decided to pay out one-half of the firm's earnings to the stockholders. Before the board's decision, the firm's retained earnings were 740,000. Which of the following statements is true?
A) Each shareholder will receive more than he or she received last year.
B) The firm's retained earnings are too high.
C) The value of the firm's retained earnings is now 860,000.
D) The value of the firm's retained earnings is now 620,000.
E) The firm should be more profitable.
Question 2 - All of the following are examples of Herzberg's hygiene factors except
A) responsibility.
B) supervision.
C) pay.
D) working conditions.
E) job security.
Question 3 - Accounting systems are utilized by companies for several reasons, but they have little value when it comes to making economic decisions.
Indicate whether the statement is true or false
Question 4 - Mark owns stock in Walgreens. He has the right to vote on company issues and examine corporate records, and he receives dividends from Walgreens' profits. What type of stock does Mark own?
A) Common
B) A class
C) Proxy
D) Dividend
E) Preferred
Question 5 - Winshare Art Company has issued only common stock. Currently it has 10,000 shares outstanding. The value of the stock is shown as 20 per share. In addition, 100,000 of Winshare's earnings have been reinvested in the business since it was founded. What is Winshare's total owners' equity?
A) 300,000
B) 200,000
C) 100,000
D) 2,000,000
E) 100,020
Question 6 - All of the following are examples of Herzberg's motivation factors except
A) achievement.
B) working conditions.
C) recognition.
D) responsibility.
E) advancement and growth.
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