Which of the Following Is Not True About the Life

question 39

Multiple Choice

Which of the following is not true about the life cycle growth and dividend policy?

• A) In the maturity stage,a firm usually pays moderate to high dividends.
• B) In the development stage,a firm usually pays stock dividends and some low cash dividends.
• C) In the expansion stage,a firm pays low to medium cash dividends and occasionally may have stock splits.
• D) In the growth stage,a firm pays stock dividends.

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Definitions:

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties on others.

Expert Power

The influence or authority derived from having specialized knowledge or expertise in a particular area.

Reward Power

Reward power is the capacity to influence others' behavior by controlling the allocation of rewards or benefits.

Countervailing Power

The ability of one group to offset the power or influence of another group, often used in contexts where there is a power imbalance, such as in labor relations.