Which of the Following Statements Is True

question 20

Multiple Choice

Which of the following statements is true?

• A)Dividends are guaranteed to preferred shareholders.
• B)Dividends accumulate on common shares.
• C)Dividends are only issued if the board of directors declares them.
• D)Dividends are paid to all classes of shares on the same basis.

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Definitions:

Business Loans

Financial products offered by banks and financial institutions to companies for the purpose of funding operations, expansions, or investments.

Commercial Loans

Commercial loans are debt-based funding agreements between businesses and financial institutions, used primarily for business purposes.

Truth In Lending Act

Legislation at the national level that facilitates educated decisions about consumer credit use by demanding information on its terms and fees be made available.

Unauthorized Use

The use of property, resources, or confidential information without permission from the rightful owner or authority.