Dividends Can Only Be Distributed If the Firm Has Positive

question 71

True/False

Dividends can only be distributed if the firm has positive income in the year the dividend is paid.

---

Definitions:

Gas Law

A set of laws that describe the behavior of gases in relation to pressure, volume, temperature, and quantity.

Mole

A mole is a unit of measurement used in chemistry to quantify the amount of substance, equivalent to approximately 6.022 x 10^23 particles, atoms, molecules, ions, or electrons.

Gas

One of the four fundamental states of matter with indefinite shape and volume, composed of molecules in constant random motion.

Gas Law

Mathematical relationships that describe the behavior of gases, relating pressure, volume, temperature, and amount of gas.