Which of the Following Is Not a Reason Why a Corporation

question 40

Multiple Choice

Which of the following is not a reason why a corporation may choose to not pay dividends?

• A)The board and management prefer to reinvest all net income for future growth.
• B)The corporation does not have adequate cash.
• C)The corporation does not have adequate retained earnings.
• D)All of these are valid reasons to not pay dividends.

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Definitions:

Microchips

Small electronic components that contain the computing and logic functions of a device or product.

Tires

Rubber coverings placed around the rims of wheels of vehicles and bicycles to provide traction and absorb shocks, essential for the vehicle's performance and safety.

Trade

The act of buying, selling, or exchanging goods and services between people or entities within or across borders.

Microchips

Compact devices made of semiconductor material, which include integrated circuits, used across a wide range of tech applications.