Payments Made by a Corporation to Its Shareholders, in the Form

question 362

Multiple Choice

Payments made by a corporation to its shareholders, in the form of either cash, stock, or payments in kind, are called:

• A) Retained earnings.
• B) Net income.
• C) Dividends.
• D) Redistributions.
• E) Infused equity.

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Definitions:

Statute

A written law passed by a legislative body at either the federal or state level.

Subsidiary Contract

An agreement connected to a primary contract, providing supplementary terms or conditions.

Trade Fixture

An item that may be attached to a building or structure but is considered personal property because it is installed by a tenant for business purposes.

Principle Of Frustration

The legal doctrine that allows a contract to be discharged when an unforeseen event makes contractual obligations impossible, or would render the performance something radically different from that agreed upon.