Dividends on Common Stock

question 35

Multiple Choice

Dividends on common stock:

• A) Are automatically paid every three months.
• B) Must be paid in cash.
• C) Are considered in default if the board fails to declare them at least once per year.
• D) Are a tax deductible expense to the corporation.
• E) Must be declared to become a liability of the firm.

---

Definitions:

Honeymoon

A traditional vacation taken by newlyweds to celebrate their marriage in intimacy and seclusion.

Crisis

A critical or tumultuous situation that requires urgent attention, often signifying a turning point or a period of intense difficulty or danger.

Linguistic Determinism

A theory suggesting that the language a person speaks determines or greatly influences their mode of thought and behavior.

Linguistic Relativism

The idea that the structure of a language affects its speakers' worldview or cognition.