Declaring and Paying Dividends Causes a Decrease in Both Assets

question 21

True/False

Declaring and paying dividends causes a decrease in both assets and equity.

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Definitions:

Human Resource Surplus

A situation where there are more employees available within an organization than necessary, often leading to downsizing or layoffs.

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or are outside the business's core competencies.

Contracting Out

The process of hiring external service providers to perform tasks, handle operations or provide services that are either difficult to manage or are outside the company's expertise.

Human Capital Shortages

A situation where there is a lack of skilled individuals available in the labor market to meet the demands of employers.