If the Raintree Company Has Accumulated Earnings Each Year but the Directors

question 30

Multiple Choice

If The Raintree Company has accumulated earnings each year but the directors have not declared dividends for five years, the shareholders may:

• A) do nothing but sell their stock.
• B) petition a court of law for redress.
• C) ask for an injunction requiring a dividend to be declared.
• D) override the board by a two-thirds vote.

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Definitions:

Federal Budget Deficit

A situation where the federal government's expenditures exceed its revenues within a given fiscal year.

Paradox of Thrift

If everyone tries to save more, they will all end up saving less.

Consumption

The use of goods and services by households, which is a key component in calculating a country's Gross Domestic Product (GDP).

Fiscal Policy Measure

Government policies related to taxation and spending that are used to influence the economy, manage inflation, and stimulate economic growth.