Which of the Following Statements Concerning Dividends Is Correct

question 1

Multiple Choice

Which of the following statements concerning dividends is correct?

• A) Firms are under no legal obligation to pay dividends to shareholders.
• B) Earnings that are paid in dividends are reinvested in the firm.
• C) Earnings that are paid in dividends contribute additional equity capita.l
• D) Companies that pay dividends try to decrease the amount of the dividends paid every year.

Appreciate the value of mission statements and codes of ethics in guiding business practices and decisions.

Understand the impact of economic, legal/regulatory, and technological environments on business operations and strategies.

Understand the historical primary role of business in an economic context.

Comprehend virtue ethics and its contrast with consequence-focused ethics.

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Definitions:

Unfair Labour Practice

Actions by employers or unions that violate the rights of employees or the collective bargaining agreement.

Collective Agreement

A written contract of employment, typically negotiated by an employer and representatives of the workforce, outlining terms and conditions of employment.

Lockout

An action in which the employer prevents employees from working.

Trade Union

An organized association of workers formed to protect and further their rights and interests; typically involved in labor negotiations.