The "Cash Flow Test" for the Payment of Dividends and Other

question 33

Multiple Choice

The "cash flow test" for the payment of dividends and other distributions is also known as the:

• A) equity insolvency test.
• B) net assets test.
• C) surplus test.
• D) balance sheet test.

Distinguish between internal and external costs and benefits.

Recognize the conditions under which markets can achieve efficiency.

Understand the role of government intervention in correcting market failures.

Identify examples of public goods and their characteristics.

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Definitions:

Disjunction

A logical operation yielding a true statement when at least one of its component statements is true.

Notation P(B\A)

In probability, the notation representing the conditional probability of event B given that event A has occurred.

Operations Of Probability

Mathematical functions applied to the set of outcomes of a random phenomenon.

Six-Sided Die

A cube-shaped object with each of its six faces displaying a different number of dots from one to six, used in games to generate random numbers.