Which Two of the Following Tend to Limit the Amount

question 62

Multiple Choice

Which two of the following tend to limit the amount of dividends that can be paid by a leveraged corporation?
I.Current tax laws
II.Corporate tax exclusion
III.Bond indenture covenant
IV.State laws pertaining to retained earnings

• A)I and II only
• B)I and III only
• C)II and III only
• D)II and IV only
• E)III and IV only

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Definitions:

Cultural Phenomena

Aspects, patterns, or trends that are representative or characteristic of a specific culture and are widely recognized and acknowledged within that culture.

Important Characteristics

Essential or significant features that distinguish an object, individual, or concept.

Trickle-down Theory

A social and economic idea suggesting that benefits for the wealthy or innovations in high fashion, for example, will eventually pass down to the less wealthy.

Fashion Acceptance Cycle

The process by which new styles and trends are introduced, accepted, and eventually declined by the public, influencing the dynamics of the fashion industry.