Asked by Michael Morales on Apr 28, 2024
Verified
What entity within the firm has the discretion to issue dividends?
A) Board of directors
B) CEO
C) CFO
D) Vice President of Finance
Board of Directors
The board of directors is a group of individuals elected by shareholders to oversee the management and governance of a corporation.
Issue Dividends
The process by which a company distributes a portion of its earnings to its shareholders.
- Understand the role of the board of directors in dividend policy decisions and the legal framework governing dividends.
Verified Answer
MS
Michelle SealeMay 03, 2024
Final Answer :
A
Explanation :
The board of directors has the discretion and authority to issue dividends to shareholders. They are responsible for making important financial decisions for the company, including dividend policies. The CEO, CFO, and Vice President of Finance may provide recommendations, but ultimately it is up to the board of directors to make the final decision on whether or not to issue dividends.
Learning Objectives
- Understand the role of the board of directors in dividend policy decisions and the legal framework governing dividends.
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