The payment of cash dividends to corporate stockholders is decided by the ________.

Question

Quizplus · Accepted Answer

The board of directors is responsible for making decisions regarding the payment of cash dividends to the corporate stockholders. They consider various factors such as the company's financial position, future plans, and the stockholders' preferences before making a decision. Creditors do not have a say in whether a company pays dividends, and the SEC's role is to regulate the securities market, not decide on dividend payments. While stockholders can express their opinions on the matter, ultimately it is the board of directors who have the final say.

The Payment of Cash Dividends to Corporate Stockholders Is Decided