When a Corporation Makes a Cash Distribution Despite Having No

question 101

Multiple Choice

When a corporation makes a cash distribution despite having no retained earnings, this is called a

• A)dividend in arrears.
• B)call provision.
• C)conversion privilege.
• D)liquidating dividend.

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Definitions:

Moisture

The presence of a liquid, usually water, often in trace amounts, within a substance, material, or environment.

Ghrelin

A hormone produced mainly by the stomach that stimulates appetite and promotes fat storage.

Stomach

A muscular organ in the gastrointestinal tract that aids in the digestion process by secreting acid and enzymes to break down food.

Hormone

A regulatory substance produced in an organism and transported in tissue fluids such as blood to stimulate specific cells or tissues into action.