One reason why small business concerns have very low dividend payout ratios is that the firm ____.
A) is usually low on cash
B) needs funds for taxes
C) needs the funds to finance growth
D) prefers stock offerings

Question

Quizplus · Accepted Answer

Small business concerns often reinvest their earnings back into the business to finance growth and expansion, rather than pay dividends to shareholders. This helps the company to grow and become more profitable in the long run.

One Reason Why Small Business Concerns Have Very Low Dividend