If a Company Has Attracted a "Clientele" of Shareholders Who

question 162

Multiple Choice

If a company has attracted a "clientele" of shareholders who like receiving dividends and who were attracted to the firm because it does pay out most of its earnings in dividends:

• A)the company would be wise to avoid changing its dividend practices.
• B)the company should attempt to modify its dividend practices and find an investor clientele that favors income through capital appreciation, so it can retain earnings and grow.
• C)Neither a nor b
• D)Both a and b

---

Definitions:

Atlas

The first cervical vertebra, supporting the skull and facilitating its range of motion.

Fibrous Capsule

A dense connective tissue layer that encloses certain organs and joints, providing support and protection.

Synovial Joint

A freely movable joint characterized by a cavity filled with synovial fluid, which lubricates and nourishes the cartilage-covered articulating surfaces.

Articular Cartilage

A smooth, white tissue that covers the ends of bones at joints, enabling easy movement and reducing friction.