Which of the Following Should Be Considered When a Company

question 106

Multiple Choice

Which of the following should be considered when a company decides to declare a cash dividend on common stock?

• A)The retained earnings balance only
• B)The amount of authorized shares of common stock
• C)The book value of the company's stock
• D)The cash available and the retained earnings balance

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Definitions:

Respondeat Superior

A legal doctrine holding employers liable for the actions of their employees performed within the scope of their employment.

Agent's Torts

Wrongful acts committed by an agent or employee that result in liability for the employer or principal.

Undisclosed Principal

A situation in a contract where the agent acts on behalf of a principal whose identity is not revealed to the third party.

Satisfied Judgment

A court decision that has been fully complied with, where all ordered payments or actions have been completed.