Which of the Following Is the Best Definition of a Residual

question 51

Multiple Choice

Which of the following is the best definition of a residual dividend approach?

• A) Payment made by a firm to its owners in the form of stock, diluting the value of each share outstanding.
• B) Procedure where a firm's number of shares outstanding is reduced.
• C) Policy where a firm pays dividends only after meeting its investment needs while maintaining a desired debt-to-equity ratio.
• D) Another method used to pay out a firm's earnings to its owners, which provides more preferable tax treatment than dividends.
• E) Cash payment made by a firm to its owners in the normal course of business, usually made four times a year.

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Definitions:

Employee Selection

The process of identifying and hiring the most suitable candidates for positions within an organization based on criteria and assessments.

Current Employees

Individuals who are actively employed and working for an organization at the present time.

80 Percent Rule

A guideline in human resources indicating a test is considered to have adverse impact if the selection rate for a minority group is less than 80% of the rate for the group with the highest selection rate.

Adverse Impact

The unintended and negative effects of a company's policies, practices, or procedures on certain groups of employees or potential employees.