When Paying Dividends, Three Rules Must Be Followed

question 30

Multiple Choice

When paying dividends, three rules must be followed.three rules.

• A) net profits rule
• B) prior claim rule
• C) capital impairment rule
• D) insolvency rule

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Definitions:

Cold Fusion

A hypothetical type of nuclear reaction that would occur at, or near, room temperature, compared to the high temperatures required for traditional nuclear fusion.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 (impossibility) and 1 (certainty).

Notation P(A)

In probability theory, a notation representing the probability of event A occurring.