Which of the Following Is Most Likely to Be Found

question 7

Multiple Choice

Which of the following is most likely to be found in state laws regarding payment of dividends?

• A) Dividends may be paid from legal capital.
• B) Retained earnings are available for dividends unless restricted by contract or by statute.
• C) Unrealized capital is available for any type of dividend.
• D) Capital from donated assets is available for dividends.

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Definitions:

Partnership

An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.

Service Business

A form of enterprise offering non-physical goods or services to its clients instead of tangible products.

Pet Groomer

A professional who provides hygiene and aesthetic care for pets, such as bathing, hair cutting, and nail clipping.

Grocer

A retail merchant or shop that specializes in selling food and other household supplies.