Regarding dividends:
A) dividends must be paid on a yearly basis.
B) the CEO of the corporation determines if a dividend will be paid.
C) companies in a growth mode will pay large dividends to their shareholders.
D) a corporation must have enough accumulated retained earnings and cash to pay dividends.

Question

Quizplus · Accepted Answer

A corporation must have enough accumulated retained earnings and cash to pay dividends. Dividends are not required to be paid on a yearly basis, and the decision to pay dividends is typically made by the board of directors, not the CEO. Companies in a growth mode typically reinvest their earnings into the company rather than paying large dividends.

Regarding Dividends