Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following is true of dividend payments? A company cannot, in any case, distribute assets in the form of cash or properly from
Which of the following is true of dividend payments?
- A company cannot, in any case, distribute assets in the form of cash or properly from capital surplus.
- Directors have the discretion to declare and distribute dividends in excess of those allowed by the articles of incorporation without being liable to the corporation.
- Dividends have to be paid to shareholders even if paying them makes the company insolvent.
- A company can revoke a share dividend as long as the shares have not been issued.
- A treasurer is bound to hand out cash to the shareholders if the board of directors declares a dividend payable on the date of the board meeting.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started