Asked by Jamie Flexer on Jun 20, 2024
Verified
Corporate distributions to shareholders are governed by state law and are consistent from state to state.
Corporate Distributions
Payments made by a corporation to its shareholders, often in the form of dividends, stock buybacks, or other financial assets.
State Law
The collection of laws and regulations established by each state governing matters within its own jurisdiction.
- Recognize the role of state law in the governance of corporate distributions to shareholders.
Verified Answer
MM
Marlen MarreroJun 24, 2024
Final Answer :
False
Explanation :
Corporate distributions to shareholders are governed by state law, but the specific regulations can vary from state to state. It is important for corporations to follow the specific rules and regulations in their state regarding distributions to shareholders.
Learning Objectives
- Recognize the role of state law in the governance of corporate distributions to shareholders.