When Does a Dividend Become a Firm Obligation

question 99

Multiple Choice

When does a dividend become a firm obligation?

• A) When the firm declares them
• B) When the firm pays them
• C) When the firm records them
• D) On the ex-dividend date

---

Definitions:

Anthropomorphism

The tendency to attribute human characteristics, such as motives, to other animal species.

Objectivity

The principle of being unbiased and impartial, ensuring personal feelings or opinions do not affect the representation of facts.

Dilution

A process of decreasing the concentration of a solute in solution, typically by adding more solvent.

Increased Vigilance

The heightened state of watchfulness and alertness to potential threats or dangers.