Which of the Following Firms Is More Likely to Use

question 30

Multiple Choice

Which of the following firms is more likely to use extraordinary dividends?

• A) One with cyclical sales
• B) One with stable sales
• C) Firms with either cyclical or stable sales
• D) Firms with neither cyclical nor stable sales

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Definitions:

Apparent Authority

A situation in which a person appears to have the authorization to act on behalf of another entity, leading third parties to reasonably believe such authority exists.

Knowingly

Acting with awareness or deliberate intention, often referenced in legal contexts to imply a person had knowledge or should have had knowledge of the implications of their actions.

Ratification

The act of formally confirming or approving an agreement, often after the agreement is initially made, to make it officially valid.

Fiduciary Duty

An obligation to act in the best interest of another party, such as that of a trustee towards a beneficiary.