Dividend Payments That Are the Result of Liquidation of Assets

question 61

Multiple Choice

Dividend payments that are the result of liquidation of assets are known as and are taxed as capital gains.

• A) alternate payments
• B) private earnings
• C) return of capital
• D) rolling dividends

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Definitions:

Controllable Costs

Expenses that can be directly influenced or managed by a specific department or level of management.

Investment Center

A business segment whose manager has control and is accountable for generating revenue, incurring costs, and making significant investment decisions.

Indirect Fixed Costs

Costs associated with the operation of a business that are not directly tied to a specific product or service and do not vary with the level of production.

Direct Fixed Costs

Costs that are directly associated with a specific product, department, or segment of a business and do not vary with the level of production or sales.