The Earned Surplus Test Does Not Permit Capital Surplus to Be

question 4

True/False

The earned surplus test does not permit capital surplus to be used for the payment of dividends.

---

Definitions:

Firms Strengths

The unique assets, capabilities, or advantages that give an organization a competitive edge in the market.

Profitable Products

Goods or services that generate more revenue than the costs associated with producing and delivering them to customers.

Marketing Products

The process of promoting, selling, and distributing a product or service.

Geographic Targeting Strategy

A marketing approach that entails selecting market segments based on their geographic location to tailor marketing efforts and products to local preferences or needs.