Which of the Following Statements Is NOT Generally True About

question 13

Multiple Choice

Which of the following statements is NOT generally true about the legality of dividend distributions?

• A) No amounts may be distributed unless the corporate capital is left intact.
• B) The corporation must still be able to pay its liabilities when they become due.
• C) A corporation may not pay dividends that are higher than their legally available retained earnings.
• D) Dividends do not need to be formally approved by the Board of Directors.

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Definitions:

Forty-Ninth Parallel

The latitude line that primarily forms the boundary between the United States and Canada, stretching from the Atlantic to the Pacific.

Oregon

A U.S. state located in the Pacific Northwest, renowned for its varied terrain that includes forests, mountains, agricultural lands, and urban areas.

Ethnic Groups

Collections of people who share common cultural characteristics, including language, traditions, and ancestry.

California

A state located on the west coast of the United States, known for its diverse geography, including beaches, forests, and deserts, as well as being a global hub for technology and entertainment industries.