A Policy of Dividend "Smoothing" Refers To

question 70

Multiple Choice

A policy of dividend "smoothing" refers to:

• A)Maintaining a constant dividend payout ratio
• B)Keeping the regular dividend at the same level indefinitely
• C)Maintaining a steady progression of dividend increases over time
• D)Alternating cash dividends with stock dividends

---

Definitions:

Entrepreneur

An individual who starts and operates a business venture, assuming the risk for the sake of the profit.

Risk

The possibility of suffering harm or loss; uncertainties affecting the outcome of investment decisions.

Start-Up Process

The series of steps entrepreneurs follow to establish a new business, including idea generation, market research, and securing financing.

Harvest

The stage when the owner removes him or herself from the business. Harvesting a business can be thought of as picking the fruit after years of labor.