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:

Misleading Strategies

Marketing or business tactics intended to deceive or lead customers or competitors astray.

Competitive Advantage

Describes a condition or circumstance that puts a company in a favorable or superior business position compared to its competitors, often due to unique resources, capabilities, or strategies.

Competitive Advantage

The unique attributes or circumstances that enable a company to outperform its competitors.

Advantages

Advantages refer to beneficial aspects or competitive edges that one person, group, product, or service has over comparable ones.