What Would Best Explain the Reluctance of General Motors to Eliminate

question 46

Multiple Choice

What would best explain the reluctance of General Motors to eliminate its dividend in 2008,only a few months before its financial collapse and eventual government takeover?

• A)clientele effect
• B)leftist theory
• C)unwillingness to initiate a share repurchase program
• D)expectations of tax law changes

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Definitions:

West Indies

A region in the Caribbean basin that encompasses a group of islands known for their diverse cultures, colonial history, and significant role in the global economy, especially during the era of the Atlantic slave trade.

Trade Deficits

A situation in which a country imports more goods and services than it exports, leading to a negative balance of trade.

King George III

Monarch of Great Britain and Ireland from 1760 until 1820, whose reign included significant events such as the American Revolutionary War and the Napoleonic Wars.

George Grenville

A British politician who served as Prime Minister and is known for implementing policies that contributed to the American Revolution.