Comment on the following statement: "When a firm retains earnings for investment purposes, it is actually saving on behalf of its shareholders."
What will be an ideal response?
The statement is true. If the firm did not retain its profits, it would distribute them to shareholders in the form of dividends. Households could then decide whether to save these funds or spend them. Thus, by making the decision to hold onto a portion of its profits, it is making the decision to save these profits on behalf of its shareholders.
Economics
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Suppose price decreases from $27.00 to $13.00. Using the mid-point formula, the percentage change in price is:
A. 0.35 = 35 percent. B. 0.7 = 70 percent. C. 0.7 = 70 percent. D. 14 percent.
Economics
The first bankers were
A. goldsmiths. B. printers. C. storekeepers. D. innkeepers.
Economics