Shareholders invest in companies directly and indirectly.Which of the following represent those investments?
$$\begin{array} { l l }
&\text { Direct } & \text { Indirect } \
A.&\text { Capital stock } & \text { Preferred shares } \
B.&\text { Capital stock } & \text { Retained earnings } \
C.&\text { Retained earnings } & \text { Contributed surplus } \
D.&\text { Retained earnings } & \text { Capital stock }
\end{array}$$

Question

Shareholders invest in companies directly and indirectly.Which of the following represent those investments? 
$$\begin{array} { l l } 
&\text { Direct } & \text { Indirect } \
A.&\text { Capital stock } & \text { Preferred shares } \
B.&\text { Capital stock } & \text { Retained earnings } \
C.&\text { Retained earnings } & \text { Contributed surplus } \
D.&\text { Retained earnings } & \text { Capital stock }
\end{array}$$

Quizplus · Accepted Answer

Direct investments involve purchasing shares directly from the company, such as capital stock. Indirect investments involve earnings or assets that are reinvested back into the company, such as retained earnings.

Shareholders Invest in Companies Directly and Indirectly A)Option a B)Option B C)Option C D)Option D

Shareholders Invest in Companies Directly and Indirectly A)Option a
B)Option B
C)Option C
D)Option D