Which of the Following Statements Is False

question 32

Multiple Choice

Which of the following statements is false?

• A) From an accounting perspective, dividends generally reduce the firm's current (or accumulated) retained earnings.
• B) The way a firm chooses between paying dividends and retaining earnings is referred to as its payout policy.
• C) Most companies that pay dividends pay them semi-annually.
• D) Occasionally, a firm may pay a one-time, special dividend that is usually much larger than a regular dividend.

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Definitions:

Foot-In-The-Door

A persuasive technique where agreeing to a small request increases the likelihood of agreeing to a larger request later.

Door-In-The-Face

A persuasion strategy where a large, likely-to-be-rejected request is made first, followed by a smaller, more reasonable request.

Groupthink

A phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Presidential Elections

The electoral process by which a country's president is selected, often involving a nationwide vote.