If a Corporation Is Profitable,directors Must Declare a Dividend to Holders

question 40

True/False

If a corporation is profitable,directors must declare a dividend to holders of common shares according to their proportionate shareholding.

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Definitions:

Stock-market Boom

A time marked by swift and considerable growth in stock market prices, typically mirroring positive economic expectations.

Crowding-out Effect

A situation where increased government spending leads to a reduction in private sector spending, either through higher taxes, higher interest rates, or borrowing.

Crowding-out Effect

A situation where increased government spending leads to a reduction in private sector investment.

Multiplier Effect

An economic phenomenon where an increase in spending produces an increase in national income and consumption greater than the initial amount spent.