Milton Hershey was not only interested in innovative candy making; he also wanted to help the members of the community. An example of his concern for the community was the founding of a home for orphan children, the Hershey Industrial Schools (now called the Milton Hershey School) in 1909. Many of the children who attended the school became Hershey employees, including former Hershey chairman William Dearden (19761984). Today, the 10,000-acre campus houses and provides education for nearly 1,300 financially and socially disadvantaged children. Although Hershey remains a public corporation, the Milton Hershey School Trust, which financially supports the school, owns about 30 percent of Hershey Foods' total equity.

The Milton Hershey Trust also owns 100 percent of the Hershey Entertainment and Resort Company, which operates a number of Hershey's non-chocolate properties, including the Hershey Park theme park, the Dutch Wonderland theme park for younger children, the Hershey Hotel, the Hershey Lodge and Convention Center, the Hershey Bears (a minor league hockey team), Hershey's zoo, a four-course golf club, an outdoor sports stadium, and an indoor sports arena.

Because Milton Hershey's original funding was wisely managed by the trust managers, the assets of the Milton Hershey School Trust have grown to a value of more than $7 billion. Milton Hershey was a visionary in terms of using a public corporation to support his philanthropic dreams.

Hershey Trust has equity in the corporation, which means

• a loan was made to the company from the trust.
• the trust owns shares of stock in the company.
• the liabilities of the company are in the name of the trust.
• the trust is in charge of business operations.

The Hershey Trust can earn money on its equity investment in the company through the increase of each share's market value and

• interest paid on money invested.
• change in par value.
• direct profit sharing through compensation.
• the payment of dividends.

Funds that are generated internally in the firm, in the form of profits that are not distributed to shareholders, are known as

• retained earnings.
• short-term assets.
• equity financing.
• accounts receivable.

The selling of stock generates ____________ for the firm.

retained earnings

• loans
• capital
• liabilities

Large corporations, such as Hershey, have a client relationship with a(n) ___________ that can provide advice about financing plans, dividend policy, or stock repurchases.

• investment banking firm

• accounting firm

• law firm

• marketing firm

• stock firm