Several Factors Will Be Considered by the Board of Directors

question 150

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)cost of other financing sources
• E)all of the above

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Definitions:

Adler's Approach

A psychological theory developed by Alfred Adler, focusing on individual psychology and the importance of community feeling and social interest.

Informal

Pertaining to non-official or casual manners, actions, or standards not governed by formal rules or ceremonies.

Freud's

Pertaining to Sigmund Freud, the Austrian neurologist who founded psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Social Interest

The concept of an individual's attitude towards and awareness of being part of a community and the inherent desire to contribute positively to it.