Consider the Following Four Types of Payments That Could Be

question 30

Multiple Choice

Consider the following four types of payments that could be made by a normal operating firm: interest,common dividends,income taxes,and preferred dividends.Compared to the other payments mentioned,where would you rank common dividend payments in terms of the order of payment if the firm is liquidating?

• A) first
• B) second
• C) third
• D) fourth

---

Definitions:

Cable Television

A system of delivering television programming via coaxial or fiber-optic cables, offering a wide range of channels and services.

Natural Monopoly

A market condition where the most efficient number of firms in the industry is one, due to the high infrastructure or fixed costs associated with distribution networks.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they place on it.

Income

The extraction of financial value, repetitively over time, from working engagements or investment pursuits.