Which of the Following Statements Is FALSE

question 66

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 semiannually.
• 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:

Normative Statement

An opinion-based statement that reflects values or judgments and cannot be tested or disproven by observation.

Positive

In the context of economic analysis, it often refers to a fact-based approach that attempts to describe how economic systems actually work without making judgments about their desirability.

Circular-Flow Diagram

A model that illustrates the movement of goods, services, and money between households and businesses in an economy.

Factor Market

A marketplace where services of the factors of production (labor, land, capital) are bought and sold.