Which of the Following Is a Difference Between Dividends on Stock

question 64

Multiple Choice

Which of the following is a difference between dividends on stock and interest on bonds?

• A) A firm has a legal obligation to pay interest on bonds, whereas it has no legal obligation to pay dividends on stock.
• B) Dividend on stock is paid by the issuer of the stock, whereas interest on bond is paid by the bondholder.
• C) A firm has a legal obligation to pay dividends on stock, whereas it has no legal obligation to pay interest on bonds.
• D) Dividend on stock is paid by the stockholder, whereas interest on bond is paid by the issuer of the bond.

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The natural or pathological decrease in physical function, health, or strength, often associated with aging or disease.

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