Which of the Following Statements Is $\bold{false}$ ?
A)When Choosing Between a Company That Pays Steady Dividends

question 62

Multiple Choice

Which of the following statements is $\bold{false}$ ?

• A)When choosing between a company that pays steady dividends and one that retains its earnings to support future growth,investors will always choose the company that pays steady dividends.
• B)Companies can develop reputations for honest financial reporting even when conveying bad news.
• C)Trends in a company's net income from year to year can provide clues about its future earnings,which can help investors to decide whether to buy stock in the company.
• D)Information in the notes to the financial statements can influence a user's interpretation of balance sheet and income statement information.

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Definitions:

Economic Mobility

The ability of an individual, family, or some other group to improve (or lower) their economic status—usually measured in income.

Social Mobility

The ability of individuals or families to move within or between social strata in a society, often reflecting changes in wealth, education, or occupation.

Underinvestment

The insufficient allocation of resources, typically financial, towards areas that could yield significant benefits or improvements.

Training

The process of teaching or learning a particular skill or behavior through practice and instruction.