Dividends Can Only Be Distributed If the Firm Has Positive

question 71

True/False

Dividends can only be distributed if the firm has positive income in the year the dividend is paid.

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Definitions:

Banking

The business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit.

Airlines

Companies that operate aircraft for transporting passengers and cargo from one place to another.

General Electric

A multinational conglomerate corporation that operates in various sectors like energy, healthcare, and aviation, known for its innovation and diversified products.

Antitrust Suit

Legal actions taken by governments against companies to prevent monopolistic practices and promote competition in the marketplace.