Managers Have Been Characterized as Reluctant to Increase Dividends If

question 110

Multiple Choice

Managers have been characterized as reluctant to increase dividends if:

• A)Dividends were increased in the preceding year
• B)Earnings have permanently increased
• C)The dividend increase cannot be sustained
• D)The dividend payout ratio exceeds 20%

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Definitions:

Production Inefficiencies

Occur when goods and services are not produced in the least costly way, often due to waste or misallocation of resources.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, highlighting the trade-offs in production choices.

Fully Employed

A situation in which all available labor resources are being used in the most economically efficient way.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods, given a set of inputs and technology, assuming efficient use of resources.