Which of the Following Determines When to Declare Dividends and in What

question 2

Multiple Choice

Which of the following determines when to declare dividends and in what amount?

• A) The stockholders
• B) The officers of the corporation
• C) The board of directors
• D) The state in which the corporation was chartered

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Definitions:

Company

A corporate body set up by a team of people aimed at operating and handling a business operation, which might be focused on commerce or industry.

Working Capital

The difference between a company's current assets and current liabilities, indicating the available capital for day-to-day operations.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Earnings Per Share

A financial metric that divides a company’s net income by the number of outstanding shares, indicating the profit earned per share of stock.