Which One of the Following Is Not a Reason Why

question 99

Multiple Choice

Which one of the following is not a reason why a corporation's ability to pay dividends may be restricted?

• A)An agreement with bondholders may require that the balance of retained earnings be maintained at a minimum level.
• B)The board of directors may set aside designated amounts for future expansion or other business purposes.
• C)State laws may require that the retained earnings balance cannot fall below the cost of treasury stock.
• D)The corporate charter may require that transactions with nonowners be excluded from retained earnings.

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Definitions:

Implicit Leadership Theory

A concept suggesting that people have implicit beliefs and convictions about the attributes that distinguish leaders from non-leaders.

Leader Traits

The inherent qualities or characteristics that are thought to make an individual effective as a leader.

Leadership Effectiveness

Leadership effectiveness refers to the extent to which a leader successfully achieves desired outcomes through the direction, motivation, and inspiration of followers.

Leader Behaviours

Actions displayed by someone in a leadership position that influence the motivation, performance, or satisfaction of followers.