Which of the Following Statements Best Describes the Role of Current

question 10

Multiple Choice

Which of the following statements best describes the role of current and accumulated E&P in determining if a distribution is a dividend?

• A) A distribution will only be a dividend if total E&P (current plus accumulated) is positive at the time of the distribution.
• B) A distribution can never be a dividend if current E&P is negative.
• C) At a minimum, some portion of the distribution will be a dividend if current E&P for the year is positive, even if accumulated E&P is negative.
• D) A distribution will never be a dividend if current E&P for the year is negative, even if accumulated E&P is positive.

---

Definitions:

Conditioned Stimulus

An initially neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Unconditioned Stimulus

In behavioral psychology, a stimulus that naturally and automatically triggers a response without any previous conditioning.

Negative Reinforcement

is a concept in behavioral psychology where the removal of a negative condition strengthens a behavior.

Operant

Pertaining to operant conditioning, a method of learning that employs rewards and punishments for behavior, leading to changes in that behavior's frequency.