Retained earnings: Multiple Choice Are never adjusted for anything other than net income or dividends. Represents the amount shareholders are guaranteed to receive upon company liquidation. Represent an amount of cash available to pay shareholders. Can only be appropriated by setting aside a cash fund. Generally consists of a company's cumulative net income less any net losses and dividends declared since its inception. PrevQuestion 12 of 20 Total12 of 20Visit question map

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.