Once Properly Declared, the Effect of a Cash Dividend Is

question 69

Multiple Choice

Once properly declared, the effect of a cash dividend is that it:

• A)is revocable until actually paid.
• B)is considered a debt the corporation owes to the shareholders.
• C)imposes personal liability on the directors who vote for it.
• D)imposes personal liability on the shareholders of a solvent corporation.

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Definitions:

Epinephrine

A hormone and neurotransmitter also known as adrenaline, secreted by the adrenal glands, that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response.

ADH

Antidiuretic Hormone, a peptide hormone that plays a crucial role in regulating water balance in the body by increasing water reabsorption in the kidneys.

Physiological Processes

Functions and activities occurring in living organisms that contribute to growth, metabolism, and reproduction.

Hormones

Chemical substances produced in the body that regulate and control the activity of certain cells or organs.