Which Circumstance Would Be Most Likely to Lead to a Decrease

question 69

Multiple Choice

Which circumstance would be most likely to lead to a decrease in a firm's dividend payout ratio?

• A)Its earnings become more stable.
• B)Its access to the capital markets increases.
• C)Its R&D efforts pay off, and it now has more high-return investment opportunities.
• D)Its accounts receivable decrease due to a change in its credit policy.

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Definitions:

Leader-member Exchange Theory

A theory suggesting that leaders develop unique relationships with each member of their team, which can affect the team's dynamics and performance.

Out-group Members

Individuals within an organization or group who are not part of the dominant coalition or inner circle, often feeling marginalized.

Organizational Commitment

The psychological attachment or loyalty an employee feels toward their organization, often reflecting in their willingness to put in effort on behalf of the organization.

Leader-member Exchange Theory

A leadership theory that focuses on the quality of the relationship between leaders and followers, emphasizing that differing types of relationships within a team can affect its dynamics and productivity.