Which One of the Following Statements Related to Cash Dividends

question 16

Multiple Choice

Which one of the following statements related to cash dividends is correct?

• A) Extra cash dividends cannot be repeated in the future.
• B) A dividend is never a liability of the issuer until it has been declared.
• C) If a firm has paid regular quarterly dividends for at least five consecutive years, it is legally obligated to continue doing so.
• D) Regular cash dividends reduce paid-in capital.
• E) The dividend yield expresses the annual dividend as a percentage of net income.

Comprehend the role and importance of external and internal monitoring in organizational management.

Recognize the situational influence on the impact of leadership in organizations.

Identify the significance of efficiency and its relationship with the competitive strategy.

Understand the importance of strategy formulation and strategic planning in organizational performance and its adaptation to dynamic environments.

---

Definitions:

Evoked Set

a set of particular brands or products a consumer considers during the decision-making process.

Inept Set

A group of brands that a consumer excludes from purchase consideration because they are viewed as unacceptable.

Inert Set

A group of brands or products that a consumer is aware of but feels indifferent towards when making a purchase decision.

Lexicographic Rule

A decision-making rule where alternatives are compared based on the most important attribute first; if one option is superior, the decision is made, otherwise the next most important attribute is considered.