Which one of the following is not necessary in order for a corporation to pay a cash dividend?
a. Approval of stockholders
b. Adequate cash
c. Declaration of dividends by the board of directors
d. Retained earnings

Respuesta :

Answer:

a) Approval of stockholders

Explanation:

a) Approval of stockholders

dividend is a payment which is paid to the investor  or stockholder in the form of assets, stocks,or in cash. the total amount paid to the stockholder is according the percentage of ownership as stock and reason for giving cash dividend is to give return for their investment in company.

The total procedure for paying cash dividend is totally based on corporate law of that particular state in which your stock is invested.

The Approval of stockholders is not necessary in order for a corporation to pay a cash dividend.

What is the cash Dividend?

A cash dividend refers to the arrangement of funds or money given to stockholders by the directors, mostly as a component of the corporation's actual earnings or collected profits or retained earnings.

Cash dividends are paid off straight in adequate cash money, as attempted to be paid as a stock dividend or other form of value.

Therefore, option A is correct.

Learn more about the cash dividend, refer to:

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