The Factors Involved in Setting a Dividend Policy Include All

question 34

Multiple Choice

The factors involved in setting a dividend policy include all of the following EXCEPT

• A) restrictive covenants in a bond indenture.
• B) growth prospects.
• C) the legal prohibition on paying dividends which exceed current earnings.
• D) capital impairment restrictions.

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Definitions:

Founders

Individuals credited with establishing an important institution or entity, often referring to the framers of the United States Constitution.

Rousseau

Jean-Jacques Rousseau, an 18th-century philosopher, writer, and composer of Geneva, who influenced the progress of the Enlightenment throughout Europe, with works on political philosophy and morality.

Hobbes

Thomas Hobbes was a 17th-century English philosopher known for his social contract theory, outlined in his work "Leviathan," where he argued that individuals consent to give up some freedoms in exchange for security provided by a sovereign.

Boston Tea Party

A political protest by the American Colonists against the British government in 1773, where they boarded British ships and dumped tea into Boston Harbor as a protest against the Tea Act.