Which of the Following Statements Is NOT Generally True About

question 76

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:

Span of Control

A management concept that refers to the number of subordinates a supervisor or manager can effectively manage and control.

Bureaucracy

An organizational style characterized by formalized rules and regulation, specialized routine tasks, division of labor, and centralized authority.

Specialization

The process of focusing on a narrow area of expertise to become more efficient and productive in that area.

Bored Employees

Refers to workers who experience a lack of interest, enthusiasm, or engagement in their job tasks.