Lentz-Tucker Incorporated reported net income of $3 million and paid no dividends to its shareholders. The shareholders have the legal right to sue the company for failure to provide a return on their investment.

Question

Quizplus · Accepted Answer

Shareholders do not have an automatic right to sue a company for not paying dividends. Dividends are at the discretion of the company's board of directors.

Lentz-Tucker Incorporated Reported Net Income of $3 Million and Paid