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In which situations might a corporation decide not to pay dividends to its shareholders?
  • a)
    When the company is experiencing high profits.
  • b)
    When it wants to reward its shareholders.
  • c)
    When it needs to reinvest profits for growth.
  • d)
    When it wants to reduce the value of the company.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
In which situations might a corporation decide not to pay dividends to...
A corporation may choose not to pay dividends to its shareholders if it believes that reinvesting the profits into the company will lead to greater future growth and increased shareholder value.
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In which situations might a corporation decide not to pay dividends to its shareholders?a)When the company is experiencing high profits.b)When it wants to reward its shareholders.c)When it needs to reinvest profits for growth.d)When it wants to reduce the value of the company.Correct answer is option 'C'. Can you explain this answer?
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In which situations might a corporation decide not to pay dividends to its shareholders?a)When the company is experiencing high profits.b)When it wants to reward its shareholders.c)When it needs to reinvest profits for growth.d)When it wants to reduce the value of the company.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about In which situations might a corporation decide not to pay dividends to its shareholders?a)When the company is experiencing high profits.b)When it wants to reward its shareholders.c)When it needs to reinvest profits for growth.d)When it wants to reduce the value of the company.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In which situations might a corporation decide not to pay dividends to its shareholders?a)When the company is experiencing high profits.b)When it wants to reward its shareholders.c)When it needs to reinvest profits for growth.d)When it wants to reduce the value of the company.Correct answer is option 'C'. Can you explain this answer?.
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