When excess resources are created through operations,what can management decide to do to create value for the shareholders?
A) Invest in marketable securities.
B) Repurchase shares.
C) Issue large dividends.
D) All of these

Question

Quizplus · Accepted Answer

Management can decide to invest excess resources in marketable securities, such as stocks and bonds, to potentially earn a return on investment. Repurchasing shares can increase the value of outstanding shares by decreasing the number of shares in circulation. Issuing large dividends can provide immediate value to shareholders and potentially attract more investors. Therefore, all of the options can create value for shareholders.

When Excess Resources Are Created Through Operations,what Can Management Decide