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:

Bed Rest

A medical treatment that involves lying in bed for most of the day to aid in the recovery of an illness or condition.

Preoperative Exercises

Physical activities recommended before surgery to enhance recovery and health outcomes.

Poor Wound Healing

A situation where a wound takes an extended period to heal, potentially due to factors like infection, poor nutrition, or underlying health conditions.

Dressing Changes

The process of replacing a wound's bandages to promote healing and prevent infection.