Which of the Following Occurs When a Previously Declared Dividend

question 99

Multiple Choice

Which of the following occurs when a previously declared dividend is paid?

• A)Equity increases
• B)Liabilities increase
• C)Liabilities decrease
• D)Assets increase

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Definitions:

Private Activity

Activities undertaken by individuals or private entities without direct government involvement or subsidy.

Equal Protection Clause

A provision in the Fourteenth Amendment of the U.S. Constitution that prohibits states from denying any person within its jurisdiction the equal protection of the laws.

Strict Scrutiny Test

A form of judicial review that courts use to determine the constitutionality of certain laws, requiring the law to be necessary to achieve a compelling government interest and be narrowly tailored.

Rational Relationship Test

A judicial standard used to determine the constitutionality of a statute or act, where the law must have a legitimate government purpose and a rational connection to that purpose.