When Companies Experience a Bad Year Regarding Earnings, They May

question 25

True/False

When companies experience a bad year regarding earnings, they may choose to reduce or omit their dividend payments.

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from retracting a promise when the other party has reasonably relied on that promise to their detriment.

Consideration

Something of value that is promised, given, or received in a contract to make it legally binding.

Moral Consideration

Ethical values or principles that influence an individual’s decisions and actions, often guiding behavior in social and professional contexts.

Unliquidated Debt

Debt for which the exact amount owed has not been determined.