The Board of Directors Must Authorize the Amount of the Dividend

question 28

True/False

The board of directors must authorize the amount of the dividend per share and the dates of record and payment of the dividend.

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Definitions:

Journal Entry

A record in the books of accounts that documents a business transaction.

Acquisition

The process of obtaining control of another company either through purchase or merger.

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.

Poison Pill

A defensive strategy used by corporations to deter hostile takeovers by making the company less attractive to the potential acquirer.