Which One of the Following Is Not a Reason Why

Multiple Choice

Which one of the following is not a reason why a corporation's ability to pay dividends may be restricted?

A) An agreement with bondholders may require that the balance of retained earnings be maintained at a minimum level.
B) The board of directors may set aside designated amounts for future expansion or other business purposes.
C) State laws may require that the retained earnings balance cannot fall below the cost of treasury stock.
D) The corporate charter may require that transactions with nonowners be excluded from retained earnings.