Which of the Following Is NOT One of the Characteristics

question 67

Multiple Choice

Which of the following is NOT one of the characteristics of a constructive dividend?

• A)Payment between a corporation and a shareholder
• B)Original payment treated as deductible by the corporation
• C)Original payment treated as made to the shareholder in some capacity other than as an owner of the corporation
• D)All of the above are common characteristics of constructive dividends.

---

Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Call Premium

The additional amount above the bond's face value that the issuer must pay to redeem it before maturity.

Unexpectedly Announces

Refers to unforeseen news or disclosures by a company that can significantly impact its stock price and investor perceptions.

Dividend

A dividend is a payment made by a corporation to its shareholders, usually in the form of cash or stock, from its profits or reserves.