Board of Directors May Be Legally Restricted in Their Declaration

question 38

Multiple Choice

Board of directors may be legally restricted in their declaration of dividends if:

• A)the cash must be borrowed for the dividend payment.
• B)dividends have increased substantially over a short period of time.
• C)the dividend would create a situation of insolvency.
• D)the stock is selling at a low relative price.

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Definitions:

Report Design View

A configuration interface in reporting software where users can create and modify the layout and structure of reports, including selecting what data to display and how it is formatted.

Arrow Keys

Keyboard keys (up, down, left, right) used for moving the cursor or navigating through items on a screen.

Form Design View

An interface in database applications that allows users to create or edit the layout of forms used for entering, displaying, and editing data.

Change Shape

A feature in many software applications that allows users to alter the geometric shape of objects within documents, presentations, or designs.