While an Earnings Requirement Limiting the Amount of Dividends Paid

question 100

True/False

While an earnings requirement limiting the amount of dividends paid is sometimes imposed, a firm is not prohibited from paying more in dividends than its current earnings.

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Definitions:

Two-Thirds Vote

A decision-making process requiring the approval of two-thirds of the members present and voting in a legislative body or other organization.

State Legislatures

These are legislative bodies in each of the United States responsible for making state laws.

Bill of Rights

The first ten amendments to the United States Constitution, ratified in 1791, guaranteeing such rights as the freedoms of speech, assembly, and worship.

Central Government

The national government, as opposed to state or local governments, responsible for managing affairs that affect the country as a whole.