According to the ________ Theory of Payout Policy,managers Pay Out

question 66

Multiple Choice

According to the ________ theory of payout policy,managers pay out cash only when pressured to do so by investors.

• A)agency
• B)supply
• C)price pressure
• D)managerial entrenchment
• E)pecking order

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Definitions:

Liquidation

The process of winding up a company's financial affairs by selling off assets to pay creditors and distribute any remaining assets to the shareholders.

Adjustment of Debts

A legal process by which an individual or business in financial distress can reorganize or negotiate their debt obligations to manage or reduce them.

Nondischargeable Debts

Financial obligations that cannot be eliminated through bankruptcy proceedings, such as certain taxes, fines, and student loans.

Child Support Payments

Financial contributions made by a non-custodial parent to assist in the upbringing of their children.