According to the ____ Dividend Policy, a Firm That Has

question 56

Multiple Choice

According to the ____ dividend policy, a firm that has more funds than it needs should pay a cash dividend to shareholders.

• A) constant payout ratio
• B) stable dollar
• C) passive residual
• D) reinvestment

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Definitions:

X-Inefficiency

An economic concept that captures inefficiencies in a firm's operations due to factors such as a lack of competitive pressure.

Principal-Agent Problems

Issues that arise when a principal hires an agent to perform tasks, and the agent's self-interest does not align with the principal's, leading to potential conflicts.

Social Regulation

Government-imposed rules and regulations designed to protect public health, safety, and well-being, affecting how businesses can operate.

Equal Employment Opportunity Commission

A federal agency in the United States charged with enforcing laws against workplace discrimination.