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:

Impossibility

A legal defense in contracts referring to situations where an unforeseen event makes it impossible for a party to fulfill their contractual obligations.

Remote Event

An occurrence that has a very low probability of happening, often considered insignificant in decision-making processes due to its unlikely nature.

Condition Precedent

A clause in a contract that requires certain conditions to be met before the contract or parts of it becomes enforceable.

Condition Subsequent

A condition in a contract or agreement that, if it occurs, terminates the contract or agreement or changes the parties' obligations under it.