In Order for a Company to Pay a Dividend

question 155

Multiple Choice

In order for a company to pay a dividend:

• A)it must have enough retained earnings to declare the dividend.
• B)it must have enough cash to pay the dividend.
• C)it must have a legal liability to do so.
• D)both A and B must occur.

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Definitions:

Choroid

A vascular layer of the eye containing connective tissue, located between the retina and the sclera, playing a key role in providing oxygen and nutrients to the outer layers of the retina.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, responsible for a large part of the eye's focusing power.

Tactile Corpuscle

A sensory receptor located in the dermal papillae, particularly sensitive to light touch; also referred to as a Meissner's corpuscle.

Dermal Papilla

A structure located at the base of the hair follicle that provides nutrients to the hair and contains capillaries and nerve endings.