Which Statement Is Correct

question 2

Multiple Choice

Which statement is correct?

• A)Dividends are never discretionary payments.
• B)A corporation need only pay dividends when it declares them to be payable.
• C)A company can avoid a cumulative dividend on preferred shares if it declares dividends on common shares.
• D)Companies must pay the shareholders interest to compensate for the time value of money lost on the deferral of dividend payments.

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Definitions:

Medicare

A federal program of health insurance for persons 65 years and older.

Medicaid

A combined federal and state program that uses general revenues to fund health care for the poor. Eligibility is tied closely to economic status.

Hospice Care

Specialized care designed to provide support and comfort to people in the final phase of a terminal illness.

Prison Hospice Programs

End-of-life care programs within prison settings, designed to provide palliative care to terminally ill inmates with the assistance of fellow inmates trained as caregivers.