Which of the Following Statements Is Not Considered a Potential

question 81

Multiple Choice

Which of the following statements is not considered a potential answer to the dividend puzzle (why do corporations pay dividends) ?

• A) Paying dividends avoids the double taxation of corporate income
• B) Demanding that managers pay out dividends restricts their investment activities and forces them to adopt more efficient investment policies
• C) Paying dividends is a source of investor goodwill
• D) Dividends are a signal to the capital markets about the health of a corporation's activities

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Definitions:

Career Paths

The progression or sequence of occupations and positions an individual may follow through their working life.

Personality Psychology

The branch of psychology that studies personality and individual differences, aiming to understand how people differ in their emotional, interpersonal, and behavioral patterns.

Shyness

a personality characteristic that involves feeling apprehensive or inhibited in social situations, often leading to avoidance or discomfort around others.

Extraversion

A personality trait typified by sociability, talkativeness, assertiveness, and high levels of emotional expressiveness.