Which Two of the Following Tend to Limit the Amount

question 32

Multiple Choice

Which two of the following tend to limit the amount of dividends that can be paid by a leveraged corporation?
I.current tax laws
II.corporate tax rates
III.bond trust deed covenant
IV.laws pertaining to retained earnings

• A)III and IV only
• B)II and III only
• C)I and II only
• D)I and III only
• E)II and IV only

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Definitions:

Tariff

A levy placed by the government on goods being imported or exported.

Consumer Surplus

The distinction between the theoretical spending capacity of consumers on a good or service and their actual spending.

Trade

The exchange of goods, services, or both between two or more parties, either domestically or internationally.

Person-job Fit

Refers to the compatibility between an individual's skills, experiences, and attributes with the demands of a job.