Dividend Payments That Are the Result of Liquidation of Assets

question 60

Multiple Choice

Dividend payments that are the result of liquidation of assets are known as ________ and are taxed as capital gains.

• A)return of capital
• B)rolling dividends
• C)alternate payments
• D)private earnings
• E)special dividends

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Definitions:

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over another, reflecting a preference based on perception of the brand's value.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good changes significantly in response to a change in price.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unaffected when the price changes.

Elasticity of Demand

An indicator of the responsiveness of the quantity of a good demanded to its price alterations, showing how sensitive buyers are to changes in its cost.