A Liquidating Dividend Is

question 30

Multiple Choice

A liquidating dividend is:

• A) Only declared when a corporation closes down.
• B) A return of a portion of the original investment back to the stockholders.
• C) Only paid in shares of stock.
• D) Only paid in assets other than cash.
• E) Not allowed under federal law.

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Definitions:

Internal Revenue Service

The Internal Revenue Service (IRS) is the agency of the U.S. government tasked with collecting taxes and enforcing the laws related to taxes.

Government in the Sunshine Act

A U.S. law aimed at ensuring that agencies conduct their meetings in public, promoting transparency.

Public Observation

The act of watching, monitoring, or scrutinizing activities, processes, or events by the general public, often for oversight or interest purposes.

Administrative Inspections

Routine examinations or checks conducted by governmental agencies to ensure compliance with laws, regulations, and standards.