Which of the Following Statements About Dividends Is Not Correct

question 1

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:

Specialize

The process of focusing on a narrow area of expertise or production, allowing individuals or firms to increase efficiency and quality.

Domestic Price

The price of goods or services within a country's borders, as opposed to their price when exported.

World Price

The global market price of a good or service, determined by supply and demand across all countries.

Export Supply Curve

A graphical representation that shows the relationship between the price of a good on the international market and the quantity of the good that a country is willing to export.