Which Two of the Following Tend to Limit the Amount

question 84

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:

Discouraged Workers

Individuals who are not actively seeking employment due to believing there are no jobs available for them.

Marginally Attached Workers

Individuals not in the labor force who want and are available to work but have not searched for a job in the past 4 weeks, hence are not counted as unemployed in labor force statistics.

Economic Reasons

Factors or motivations grounded in economics that explain certain behaviors, decisions, or trends.