Boards of Directors May Be Legally Restricted in Their Declaration

question 26

Multiple Choice

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

• A) 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:

Hunting Capability

The ability or skill set an organism possesses to track, pursue, and capture prey for sustenance.

Neanderthals

An extinct species of human closely related to modern humans, living in Europe and parts of Asia until about 40,000 years ago.

Adaptive Evolution

Evolutionary changes that improve an organism's fit to its environment, driven by natural selection.

Language-Processing Centers

Regions in the brain responsible for understanding and producing language, including Broca's and Wernicke's areas.