Boards of Directors May Be Legally Restricted in Their Declaration

question 95

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.

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Definitions:

Hallucinogenic Drug

A substance that induces alterations in perception, mood, and thought, often creating experiences that differ from objective reality.

Peyote

A small, spineless cactus with psychoactive alkaloids, notably mescaline, used primarily in Native American spiritual ceremonies.

Hispanic-American

An individual in the United States of either Hispanic or Latino origin, which encompasses a diverse range of backgrounds and countries.

Activation-Synthesis Hypothesis

A theory suggesting that dreams are the result of the cerebral cortex interpreting random signals from the brain during REM sleep.