The Controversial Practice of a Company Borrowing Money Simply to Fund

question 99

Multiple Choice

The controversial practice of a company borrowing money simply to fund dividend payouts to itself is known as

• A) a leveraged buyout.
• B) retrenchment.
• C) first mover advantage.
• D) dividend recapitalization.
• E) dividend divestiture.

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Definitions:

Defensive Pessimism

A strategy where an individual sets low expectations and overprepares for possible negative outcomes as a way to manage anxiety and improve performance.

Balance Framework

A conceptual structure used for analyzing, managing, or maintaining stability among different elements within a system, organization, or work-life integration.

Social Adjustment

The process by which individuals adapt their behavior to conform to the expectations or norms of a social group or society.

Criminal Liability

The legal responsibility for a crime and the resulting punishment.