Which of the Following Is Not a Legal Restriction Related

question 74

Multiple Choice

Which of the following is not a legal restriction related to profit distributions by a corporation?

• A) The amount distributed to owners must be in compliance with the state laws governing corporations.
• B) The amount distributed in any one year can never exceed the net income reported for that year.
• C) Profit distributions must be formally approved by the board of directors.
• D) Dividends must be in full agreement with the capital stock contracts as to preferences and participation.

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Definitions:

Preoperational

Pertains to Piaget's stage of cognitive development (roughly ages 2-7) where children start to use language but do not yet comprehend concrete logic.

Concrete Operations

Third stage of Piagetian cognitive development (approximately ages 7 to 12), during which children develop logical but not abstract thinking.

Sensorimotor

The first stage in Jean Piaget's theory of cognitive development, characterized by the understanding of the world through physical interaction and movement.

Formal Operations

A stage of cognitive development in which individuals are able to think abstractly and reason logically, typically emerging in adolescence.