Payments of Cash by a Corporation to Its Shareholders Are

question 133

Multiple Choice

Payments of cash by a corporation to its shareholders are called

• A)Dividends.
• B)Shareholders equity.
• C)Withdrawals.
• D)Cheques.
• E)Expenses.

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Definitions:

Liability

The state of being legally responsible or obligated to settle a debt, fulfill a contractual duty, or compensate for harm or loss.

Authorizing

The act of giving legal or formal approval for something or someone to proceed or act in a certain way.

Enforce

To compel obedience to a law, rule, or obligation through the imposition of penalties or other legal mechanisms.

Warranty Liability

Legal obligation of a seller to compensate the buyer for losses caused by defects or failures in the product warranted.