Which of the following is not a legal restriction related to profit distributions by a corporation?
A) The amount distributed to owners must be in compliance with the laws governing corporations.
B) The amount distributed in any one year can never exceed the net income reported for that year.
C) Profit distributions must be formally approved by the board of directors.
D) Dividends must be in full agreement with the capital contracts as to preferences and participation.
Correct Answer:
Verified
Q30: The pre-emptive right enables a shareholder to
A)share
Q31: Which of the following represents the total
Q32: Equity is generally classified into two major
Q33: Total shareholders' equity represents
A)a claim to specific
Q34: A primary source of shareholders' equity is
A)income
Q36: The residual interest in a corporation belongs
Q37: A "secret reserve" will be created if
A)inadequate
Q38: Ordinary no-par shares
A)Are considered illegal.
B)May be subject
Q39: Dunn Trading Co.issued 2,500 ordinary shares, The
Q40: In January 2015, Finley Corporation, a newly
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents