Lenders Will Sometimes Impose Dividend Restrictions To

question 273

Multiple Choice

Lenders will sometimes impose dividend restrictions to:

• A)prevent the corporation from paying out too much to stockholders.
• B)try to limit available dividends.
• C)prevent the corporation from paying out too much to other creditors.
• D)ensure the lenders will receive more dividends than the stockholders.

---

Definitions:

External Cost

A cost incurred by a third party who did not agree to the action that caused the cost, often associated with negative environmental impacts or health hazards.

Antibiotic-Resistant

Referring to bacteria that have evolved to survive exposure to antibiotics that were previously effective in killing them or inhibiting their growth.

Government Policy

Actions and decisions made by the government to achieve certain goals or address specific issues within a country.

Antibiotic Overuse

The excessive or inappropriate use of antibiotics, contributing to antibiotic resistance, where bacteria evolve to become resistant to these medications.