Which of the Following Is Not True Regarding Restrictions on Dividend

question 58

Multiple Choice

Which of the following is not true regarding restrictions on dividend payments?

• A)These restrictions typically arise when loan agreements prohibit the registrant from paying cash dividends without the consent of the lender.
• B)In certain cases,restrictions at a subsidiary-company level exist such that the registrant's subsidiary companies may not transfer amounts to the registrant without the consent of a third party.
• C)Amounts subject to restrictions must be disclosed.
• D)The auditor will typically confirm with shareholders whether there are any side agreements regarding dividend restrictions.

---

Definitions:

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation and personal growth.

Humanistic Theory

A psychological perspective that emphasizes individual potential for growth and the importance of self-actualization, empathy, and unconditional positive regard in therapy.

Psychological Health

A condition of good health where a person recognizes their own capabilities, manages everyday stress effectively, contributes positively to society, and maintains productive work.

Positive Psychology

A branch of psychology focused on the study of positive emotions, strengths-based character, and healthy institutions to improve quality of life.