Which of the Following Statements About Dividends Is Not Correct

question 101

Multiple Choice

Which of the following statements about dividends is not correct?

• A)Cash dividends are generally declared quarterly as a dollar amount per share.
• B)Dividends can be declared on both preferred and common shares.
• C)The board of directors is obligated to declare dividends.
• D)Dividends can be in cash or stock.

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Definitions:

Credit Availability

The simplicity of securing loans and different types of credit for individuals and companies from finance companies.

Consumer Durable

Long-lasting goods purchased by consumers that are not consumed quickly and provide utility over time, such as appliances and vehicles.

Consumer Nondurable

Goods that are consumed quickly and must be purchased regularly, such as food, beverages, and toiletries.

Service

An intangible commodity that involves providing labor or expertise in exchange for payment.