BUSINESS ADMINISTRATION
ORGANIZATIONAL BEHAVIOUR
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Targets need to be realistic otherwise workers will not be motivated to achieve them.
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Shareholders may feel that money is taken from the dividends they receive. However the overall profits may increase, so the dividends may increase.
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Pay is a business cost. High costs may reduce costs
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Car allowances and child care vouchers are a cost to the business that may reduce profits.
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Detailed explanation-1: -Shareholders would prefer the company’s management to take actions that increase the share price and dividends and improve their financial position.
Detailed explanation-2: -Companies that don’t pay dividends on stocks are typically reinvesting the money that might otherwise go to dividend payments into the expansion and overall growth of the company. This means that, over time, their share prices are likely to appreciate in value.
Detailed explanation-3: -Stock dividends have no impact on the cash position of a company and only impact the shareholders’ equity section of the balance sheet. If the number of shares outstanding is increased by less than 20% to 25%, the stock dividend is considered to be small.
Detailed explanation-4: -A company that is still growing rapidly usually won’t pay dividends because it wants to invest as much as possible into further growth. Mature firms that believe they can increase value by reinvesting their earnings will choose not to pay dividends.