Which of the following determines when to declare dividends and in what amount?
A) The stockholders
B) The officers of the corporation
C) The board of directors
D) The state in which the corporation was chartered

Question

Quizplus · Accepted Answer

The board of directors is responsible for making decisions regarding the declaration of dividends and determining the amount to be distributed to stockholders. This decision is based on various factors such as the company's financial performance, cash flow position, and future growth plans. While stockholders have the right to vote on matters such as the election of board members, they do not have the authority to declare dividends. Similarly, officers of the corporation are responsible for the day-to-day operations of the company and do not have the authority to declare dividends. The state in which the corporation was chartered may have certain regulations related to dividend declarations, but ultimately the decision lies with the board of directors.

Which of the Following Determines When to Declare Dividends and in What