Which of the following statements accurately describes the relationship between earnings and dividends when all other factors are held constant?

All else being equal, growth in dividends requires growth in earnings.
Retaining a higher percentage of earnings will result in a lower growth rate.
Long-run earnings growth will decrease when firms retain earnings and reinvest them in the business.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business.true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.