Which of the Following Best Describes the Dividend Decision in Terms

question 2

Multiple Choice

Which of the following best describes the dividend decision in terms of benefits for the stockholder?

• A)Paying dividends creates a short-term benefit, while retaining earnings has the potential to be a long-term benefit.
• B)Paying dividends creates a long-term benefit, while retaining earnings has the potential to be a short-term benefit.
• C)Paying dividends and retaining earnings both create short-term benefits.
• D)Paying dividends and retaining earnings both create long-term benefits.
• E)The decision to pay dividends or retain earnings has little impact on the stockholder.

---

Definitions:

Insane

A term historically used to describe individuals with mental health conditions affecting their ability to think, feel, and behave clearly, though it is now considered outdated and stigmatizing.

Bulimia Nervosa

An eating disorder characterized by cycles of binge eating followed by behaviors to avoid weight gain, such as self-induced vomiting, excessive exercise, or the use of laxatives.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by an extremely low body weight relative to stature, an intense fear of gaining weight, and a distorted perception of body weight and shape.

Culture-bound Syndrome

A collection of psychiatric and somatic symptoms that are considered to be a recognizable disease only within a specific society or culture.