Holders of Ordinary Shares

question 55

Multiple Choice

Holders of ordinary shares:

• A) Are assured of dividends each year.
• B) May not receive a cash dividend each year but the dividend will accrue and eventually be paid.
• C) Will always receive a dividend if the company has made a profit in that financial year.
• D) Receive dividends at the discretion of the board.
• E) None of the given answers.

---

Definitions:

Units

A measure of quantity used to quantify the amount of production output, inventory, or sales.

Variable Costs

Expenses that change in proportion to the production or sales figures.

Per Unit

A measure or cost expressed per single item or quantity of a product or service.

Cost Behaviour

The way in which costs change in relation to alterations in an organization's level of activity.