Which of the Following Is a Reason Why a Corporation

question 99

Multiple Choice

Which of the following is a reason why a corporation may choose not to pay cash dividends?

• A) The board and management prefer to reinvest all net income for future growth.
• B) The corporation does not have adequate Cash.
• C) The corporation does not have adequate Retained Earnings.
• D) All of these are valid reasons not to pay dividends.

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Definitions:

Combined Profit

The total profit earned by a group of companies or the sum of profits from different business activities within a single company.

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A large flatfish found in the North Pacific Ocean, known for its significant value as a commercial and sports fishery resource.

Environmental Performance Index (EPI)

A method of quantifying the environmental performance of a country's policies.

GDP

Gross Domestic Product, a measure of the total economic output of a country, representing the total value of all goods and services produced over a specific time period.