Which of the Following Is Not a Legal Restriction Related

question 28

Multiple Choice

Which of the following is not a legal restriction related to profit distributions by a corporation?

• A)The amount distributed to owners must be in compliance with the laws governing corporations.
• B)The amount distributed in any one year can never exceed the net income reported for that year.
• C)Profit distributions must be formally approved by the board of directors.
• D)Dividends must be in full agreement with the capital contracts as to preferences and participation.

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Tinea Pedis

A fungal infection of the foot, commonly known as athlete's foot.

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