Which One of the Following Is Usually NOT Necessary in Order

question 72

Multiple Choice

Which one of the following is usually NOT necessary in order for a corporation to pay a cash dividend?

• A)Sufficient cash
• B)Formal action of the board of directors
• C)Declared dividends
• D)Sufficient retained earnings

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Definitions:

Legal Ownership

The lawful possession of property, characterized by rights such as transfer, use, and exclusion, recognized and enforced by legal systems.

Legal Ownership

The formal and legally recognized possession of property, rights, or interests, backed by law.

True Value

Represents the actual, inherent worth of an asset, free from market fluctuations or perceptions.

Gift Causa Mortis

A gift made by someone in contemplation of imminent death, which becomes void if the donor survives.