Which Statement Is Correct Concerning Property Dividends

question 51

Multiple Choice

Which statement is correct concerning property dividends?

• A)Issuing property dividends is a common method of distributing value to the shareholders.
• B)A property dividend could be used to transfer assets from a subsidiary to a parent company.
• C)Property dividends cannot be used by a parent company to distribute shares of an associate or subsidiary to its shareholders.
• D)The historical value of the property is used for purposes of recording the value of the dividend.

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Definitions:

Output Effect

The impact on total production that occurs when a firm modifies the price of its good, influencing the quantity sold and altering the firm's output level.

Purely Competitive

A market structure characterized by a large number of small firms producing identical products, with easy entry and exit from the market, leading to no single firm having control over market price.

Wage Rate

The compensation paid to employees for their labor, typically expressed as an hourly, daily, or piece rate.

Variable Input

A factor of production whose quantity can be changed easily and quickly in the short run to increase or decrease output.