Which of the following statements is NOT generally true about the legality of dividend distributions?

Question 13Select one:

a.

The corporation must still be able to pay its liabilities when they become due.

b.

No amounts may be distributed unless the corporate capital is left intact.

c.

Dividends do not need to be formally approved by the Board of Directors.

d.

A corporation may not pay dividends that are higher than their legally available retained earnings.