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:

Goal Difficulty

The extent to which a goal is challenging and requires effort to achieve.

Linear

Describing something that is sequential or straightforward, often used in contexts like processes or growth patterns that follow a direct path.

Profit-Sharing Programs

Incentive plans introduced by businesses that provide employees with a share of the company's profits beyond their standard pay.

Skill-Based Pay

A compensation system that bases an employee’s pay on the skills, knowledge, and abilities they demonstrate, rather than their job title or position.