Paying Dividends Causes a Decrease in Total Paid-In Capital

question 107

True/False

Paying dividends causes a decrease in total paid-in capital.

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Definitions:

Organic Structure

An organizational form that is flexible, decentralized, and characterized by low levels of formalization and high levels of communication, suited to dynamic and uncertain environments.

Formal Hierarchy

An organizational structure where individuals are ranked according to their levels of authority and responsibility, forming a clear chain of command.

Centralized Structure

An organizational structure where decision-making authority is concentrated at the top levels of management.

Organic Structure

Is a flexible, decentralized organizational structure with less formal procedures, open communication channels, and a focus on adaptability and teamwork.