Boards of Directors May Be Legally Restricted in Their Declaration

question 105

Multiple Choice

Boards 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

---

Definitions:

Desktop Office

A suite of productivity applications installed on a desktop computer, typically including word processor, spreadsheet, presentation, and email programs.

Microsoft Account

A Microsoft Account is a single sign-in service provided by Microsoft that allows access to a wide array of services and devices, including Windows, Office, and Xbox.

Email Settings

Configurations within email software that govern how email is sent, received, stored, and displayed, including preferences for server addresses, security, and notifications.

Subscription Plans

Various levels of service or access offered to users, usually for a periodic fee.