Which of the Following Is False Regarding the Issue of Stock

question 140

Multiple Choice

Which of the following is false regarding the issue of stock versus the issue of bonds to raise capital?

• A)The payment of dividends is at the discretion of the board of directors.
• B)The payment of interest on bonds payable is required by law.
• C)Interest accrues,whereas dividends do not accrue.
• D)The declaration of dividends reduces the amount of income taxes the corporation must pay.

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Definitions:

Neglecting

The failure to provide for a dependant's basic needs, which can include physical, emotional, and educational neglect.

Insecurely Attached

Describes an attachment style in individuals who have developed anxiety or avoidance in close relationships due to inconsistent or negative early interactions with caregivers.

Biological Maturation

The process of physical and psychological development in organisms, guided by genetic factors.

Nativist Position

A theory in cognitive development asserting that certain skills or abilities are "native" or hard-wired into the brain at birth.