Which of the Following Is Correct When Considering Retained Profits

question 39

Multiple Choice

Which of the following is correct when considering retained profits as a form of financing?

• A)Financing is immediate as retained profits are already held by the company.
• B)Companies can only pay out 50% of their retained profits on dividends so there is always money available.
• C)Businesses either pay out all their retained earnings on dividends or they pay none at all.
• D)All of the above statements are correct.

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Definitions:

Predictive Validity

The extent to which a score on a scale or test predicts future performance on a related task.

Reliability

The degree to which an assessment tool produces stable and consistent results across multiple trials and instances.

Intelligence Scores

Numerical assessments derived from standardized tests designed to measure human intelligence and cognitive abilities.

Preschool Student

A child who attends an educational establishment designed to prepare them for primary school, typically aged between 3 and 5 years.