JBP Incorporated's ____ has determined that the company should retain earnings for the year.This has been approved by the board of directors.
A) corporate management
B) common stockholders
C) preferred stockholders
D) corporate creditors

Question

​JBP Incorporated's ____ has determined that the company should retain earnings for the year.This has been approved by the board of directors.
A) ​corporate management
B) ​common stockholders
C) ​preferred stockholders
D) ​corporate creditors

Quizplus · Accepted Answer

Retaining earnings is a decision made by corporate management, which is responsible for the financial operations of the company. The board of directors approves this decision as they have oversight over management and must approve major financial decisions. Common stockholders and preferred stockholders do not typically have a direct say in whether the company retains earnings or distributes them as dividends. Corporate creditors may be affected by the decision to retain earnings, but they do not make the decision themselves.

​JBP Incorporated's ____ Has Determined That the Company Should Retain

JBP Incorporated's ____ Has Determined That the Company Should Retain