If the corporation has a bad year,the board of directors generally may vote to:
A)sell less stock.
B)decrease the stock price.
C)cease selling stock.
D)omit dividend payments.
E)increase dividend payments.

Question

Quizplus · Accepted Answer

The board of directors may decide to omit dividend payments if the corporation has a bad year to conserve cash. The decision to sell stock, change its price, or cease selling stock involves different considerations and is not directly a response to a bad financial year. Increasing dividend payments would be counterintuitive in such a scenario.

If the Corporation Has a Bad Year,the Board of Directors