Which of the Following Is a Reason Why a Corporation

question 37

Multiple Choice

Which of the following is a reason why a corporation may choose not to pay dividends?

• A) The board and management prefer to reinvest all net income for future growth.
• B) The corporation does not have adequate cash.
• C) The corporation does not have adequate retained earnings.
• D) All of these are valid reasons to not pay dividends.

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Definitions:

Heart Attack

A medical emergency in which the blood flow to the heart is suddenly blocked, potentially causing damage to the heart muscle.

Hypochondriasis

A psychological disorder characterized by excessive preoccupation with the fear of having a serious illness, despite medical reassurance.

Bodily Sensations

Feelings or perceptions related to the physical condition or state of the body, often linked to the five senses.

Stomach Cancer

A disease characterized by the abnormal growth of cells in the lining of the stomach that can lead to serious health complications.