If a Corporation Is Profitable,directors Must Declare a Dividend to Holders

question 40

True/False

If a corporation is profitable,directors must declare a dividend to holders of common shares according to their proportionate shareholding.

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Definitions:

Marginal Cost

The variation in the overall expense that occurs as a result of increasing the production quantity by one unit.

Consumer Surplus

The benefit consumers receive when they pay less for a product than what they were prepared to pay, measured by the area beneath the demand curve and above the price.

Monopolist

An entity, often a single firm, that holds exclusive control over the supply of a particular good or service, setting prices without competition.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.