Assume That Satisfied Clienteles Exist

question 83

Multiple Choice

Assume that satisfied clienteles exist.Given this assumption, which one of these statements is correct?

• A)A firm can increase its share price by increasing its dividend payout.
• B)Dividend policy is irrelevant as long as each clientele group remains satisfied.
• C)All firms will adopt a high-dividend-payout policy.
• D)All dividends become irrelevant.
• E)All firms should adopt a low-dividend-payout policy.

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Definitions:

Competitive Edge

An advantage that a company has over its competitors, allowing it to generate greater sales or margins and/or retain more customers.

Competitive Power

The ability of a company or nation to produce goods and services that meet the quality standards of the local and global markets at prices that are competitive and provide adequate returns on the resources employed.

Benchmarking

The act of evaluating one's business operations and performance indicators against the top standards or optimal practices observed in the sector or across different industries.

Reverse Engineering

The process of deconstructing a product or system to understand how it works, often with the goal of reproducing or improving it.