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Which of the Following Best Describes Restrictions on Cash Dividends

Question 158

Multiple Choice

Which of the following best describes restrictions on cash dividends and treasury stock purchases?


A) restrictions on cash payments that are made to ensure higher reported profits
B) limits required by lenders or creditors to ensure that the company maintains adequate levels of equity
C) restrictions on payments made by the shareholders to lower federal income tax expense
D) limits that are established to boost sales revenues

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