Which of the Following Is Not a Prerequisite to Paying

question 162

Multiple Choice

Which of the following is not a prerequisite to paying a cash dividend?

• A) formal action by the board of directors
• B) market value in excess of par value per share
• C) sufficient cash
• D) sufficient retained earnings

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Definitions:

National Defense

The governmental and military activities aimed at defending a country's territorial integrity and protecting its citizens from external threats.

Misallocated

A situation where resources are used inefficiently, resulting in lost potential output or wasteful expenditures.

Market Failure

A situation in which the allocation of goods and services by a free market is not efficient, often leading to a social welfare loss.

Public Good

An offering of goods or services to society's members at no cost, made available by public institutions or private bodies or individuals, not aiming to generate profits.