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PowerPills Is a Highly Successful Vitamin Manufacturer

Question 77

Multiple Choice
PowerPills is a highly successful vitamin manufacturer. At the close of its most recent fiscal year, the company's balance sheet showed cash holdings of $110 million. Which of the following actions will provide the most benefit for stakeholders?

PowerPills is a highly successful vitamin manufacturer. At the close of its most recent fiscal year, the company's balance sheet showed cash holdings of $110 million. Which of the following actions will provide the most benefit for stakeholders?


A) Reinvest profits into expanding the company and creating more jobs.
B) Reward the CEO with a significant bonus payment.
C) Save the excess cash as a precaution against black swan events.
D) Buy out the leading competitor to reduce competition and maintain price stability.

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