Which of the Following Is Not a Reason Why a Corporation

question 10

Multiple Choice

Which of the following is not a reason why a corporation may choose not to pay 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:

Dispositional Attribution

The tendency to attribute someone's behavior to their internal qualities or personality rather than to situational factors.

Collectivistic Remark

A statement or observation that emphasizes the importance of groups or communities over individuals.

Situational Attributions

The process of explaining the behavior of someone based on external factors or the situation surrounding the behavior, as opposed to internal personality traits.

Unconscious Motivation

Drives and desires that are not readily accessible to an individual's conscious awareness, yet influence behaviors and decisions.