Which of the Following Is True About Dividends

question 46

Multiple Choice

Which of the following is true about dividends?

• A)Dividends are paid at the discretion of the shareholders.
• B)Dividends cannot be used for corporate purposes.
• C)Dividends will be paid to shareholders who have sold their shares prior to the record date.
• D)Dividends once declared, cannot be revoked.

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Definitions:

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that suppliers are willing to sell.

Sales Tax

A tax imposed by governments on the sale of goods and services, typically calculated as a percentage of the purchase price.

Price

The amount of money required to purchase a good or service, often determined by the interaction of supply and demand.