In the Real World, Dividends

question 13

Multiple Choice

In the real world, dividends

• A) are usually more stable than earnings.
• B) fluctuate more widely than earnings.
• C) tend to be a lower percentage of earnings for mature firms.
• D) are usually changed every year to reflect earnings changes, and these changes are randomly higher or lower, depending on whether earnings increased or decreased.

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Definitions:

Union Density Rate

The proportion of workers in a given sector or country who are members of unions, indicating the level of unionization.

Works Council

A works council is an institution representing workers and employees in a company or organization, facilitating dialogue between the workforce and management on issues affecting their interests and working conditions.

German Law

The system of rules that operate in Germany, including a significant body of labor and employment law that governs the relationship between employers and employees.

Codetermination

A practice allowing workers and their representatives to participate in the management and decision-making processes of a company.