Which of the Following Statements Is Not True

question 20

Multiple Choice

Which of the following statements is not true?

• A)Most board members like to keep stockholders happy.
• B)Few things will unite stockholders into a powerful opposition force more rapidly than omitted or lowered dividends.
• C)Intelligent investors must be concerned about future after-tax profits.
• D)If a cash dividend is declared by the board of directors, each stockholder by law receives an equal amount per share.
• E)Corporate dividends are always paid in cash.

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Definitions:

Irresistible Impulse Test

A legal defense principle suggesting a person should not be held responsible for their actions if they could not control their impulses due to a mental illness.

Fit of Passion

An intense and sudden display of emotion, such as anger or excitement, that can result in unpredictable behavior.

M'Naghten Rule

A legal standard for determining criminal insanity, which focuses on whether the defendant was able to understand the nature and quality of the act or knew it was wrong.

American Law Institute Test

A standard used in criminal law to determine insanity, focusing on the inability to distinguish right from wrong and self-control over actions.