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:

Customer Value

The perception of what a product or service is worth to a customer versus the possible alternatives, reflecting the benefits and costs.

Unique Value

Unique value denotes the exclusive benefits or features that make a product or service stand out from its competitors.

Environmental Forces

External factors such as social, economic, technological, and political conditions that influence an organization's or industry's performance but are beyond its control.

Competitive

Relating to, characterized by, or based on the principle of competition, where entities vie for dominance in a market or field.