Dividends of a corporation are declared by its
A) board of directors.
B) officers.
C) stockholders.
D) creditors.

Question

Quizplus · Accepted Answer

Dividends are declared by the board of directors of a corporation. They are responsible for managing the affairs of the corporation and making decisions such as the payment of dividends to stockholders. The officers of a corporation may make recommendations to the board of directors, but ultimately it is the board who decides whether or not to declare dividends. Creditors do not have a say in the payment of dividends, and while stockholders may receive dividends, they do not declare or decide on them.

Dividends of a Corporation Are Declared by Its