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

question 28

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

---

Definitions:

Stakeholder Management

The process of identifying, analyzing, and managing individuals or groups that have an interest or stake in an organization's actions and outcomes.

Corporate Affairs

A department within a company dealing with external relations, communication, and strategic management issues.

Annual Report

a comprehensive report on a company's activities throughout the preceding year, intended to give shareholders and other interested people information about the company's performance and financial position.

Secondary Information

Secondary information refers to data that was collected by someone else for a different purpose but is being utilized for a current research or analysis.