Which of the Following Statements Is True

question 16

Multiple Choice

Which of the following statements is true?

• A) The stable dividend payout ratio keeps the dollar amount of the dividend stable.
• B) Dividends usually do not increase unless management is convinced that the higher dividend can be maintained in the future.
• C) The dividend policy which allows for an extra dividend at year-end in prosperous years includes a fairly large regular dividend payment per share every year.
• D) All of the above are true.

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Definitions:

McGregor

Refers to Douglas McGregor's Theory X and Theory Y, which describe two contrasting models of workforce motivation and management.

Theory X

Assumes people dislike work, lack ambition, are irresponsible and prefer to be led.

Bureaucracy

An organizational structure characterized by formal rules and regulations, a clear hierarchy, and detailed procedures and protocols.

Division of Labour

The allocation of different tasks to different people or groups in an organization or economy, aimed at increasing efficiency and productivity.