Which of the Following Statements About Why Companies Choose Not

question 9

Multiple Choice

Which of the following statements about why companies choose not to pay cash dividends is (are) true?

• A)The board and management prefer to reinvest all net income for future growth.
• B)The corporation does not have sufficient cash.
• C)The corporation does not have sufficient retained earnings.
• D)All of these statements are true.

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Definitions:

Interstate Commerce

Interstate commerce refers to any trade, traffic, or transportation involving the crossing of state lines within the United States, governed by federal regulations.

Local Commerce

The exchange of goods and services within a particular geographic area, usually within the confines of a city or town.

Can Spam Act

A federal law designed to reduce the use of unsolicited email, commonly known as spam, on the Internet.

Unsolicited Commercial

Advertisement material or communication sent to individuals without their prior request or consent, often seen as spam in emails or direct mail.