A Company May Pay a One-Time Dividend If It Has

question 52

True/False

A company may pay a one-time dividend if it has benefitted from an unusual gain.

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Definitions:

Idle Production Capacity

refers to resources, especially in manufacturing, that are not currently in use or are underused, affecting the efficiency and profitability of a business.

Off-Peak Pricing

Charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service.

Demand

The willingness and eagerness of a consumer to purchase a particular product or service at a certain price.

Idle Production Capacity

Refers to the part of a manufacturing plant that is not being used to its full potential to produce goods.