Several Factors Will Be Considered by the Board of Directors

question 52

Multiple Choice

Several factors will be considered by the board of directors and management as they consider the level of dividend payout.Some of these factors include:

• A)the ability of the firm to generate cash to sustain the level of dividends.
• B)legal and contractual considerations
• C)growth opportunities
• D)all of the above
• E)none of the above

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Definitions:

Venture Capitalist

An investor who provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.

Demoted

The act of reducing someone's rank, status, or position as a punitive measure or due to organizational restructuring.

Convertible Debt

A form of short-term borrowing that can be turned into equity, typically a predetermined number of shares, either upon future financing or at the discretion of the investor.

Control

pertains to the power to influence or direct people's behavior or the course of events.