Dividends Can Only Be Distributed If the Firm Has Positive

question 71

True/False

Dividends can only be distributed if the firm has positive income in the year the dividend is paid.

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Definitions:

Anaphase

A phase of mitosis and meiosis in which the chromosomes separate and move to opposite ends of the cell.

Separated Chromosomes

Chromosomes that have been pulled apart from their original pair during cell division.

Mitosis

A process of cell division in eukaryotic cells where the nucleus divides, resulting in two daughter cells each having the same number and kind of chromosomes as the parent nucleus.

Parent Cell

A cell that divides to give rise to daughter cells through the processes of mitosis or meiosis, serving as the original source for the genetic material.