Which One of the Following Is Not Necessary in Order

question 11

Multiple Choice

Which one of the following is not necessary in order for a corporation to pay a cash dividend?

• A) Adequate cash
• B) Approval of stockholders
• C) Declaration of dividends by the board of directors
• D) Retained earnings

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Definitions:

APC

Average Propensity to Consume (APC) is a measure of the fraction of income spent on consumption rather than saving in an economy.

Disposable Income

Discretionary income for households to utilize in their saving and spending after the enforcement of income taxes.

Consumption

Refers to the use of goods and services by households or individuals for personal needs or for leisure, as opposed to investment or savings.

Billion

A numerical value represented by 1,000 million or 10^9.