Which One of the Following Is Not a Reason Why

question 121

Multiple Choice

Which one of the following is not a reason why a corporation's ability to pay dividends may be restricted?

• A)An agreement with bondholders may require that the balance of retained earnings be maintained at a minimum level.
• B)The board of directors may set aside designated amounts for future expansion or other business purposes.
• C)State laws may require that the retained earnings balance cannot fall below the cost of treasury stock.
• D)The corporate charter may require that transactions with nonowners be excluded from retained earnings.

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Definitions:

Control Chart

A tool used in statistical quality control to monitor and control a process by plotting the performance of the process over time and identifying any signs of process variation.

Shewhart

Walter A. Shewhart, known for his work in statistical process control and the development of the control chart.

Planning Process

A systematic approach to setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions.

Mathematical Interpretation

The process of understanding and applying mathematical concepts and symbols to solve problems or represent real-world scenarios.