Which One of the Following Statements Is True

question 61

Multiple Choice

Which one of the following statements is true?

• A)Board members are appointed by a company's management.
• B)Stockholders receive a tax break on dividend income.
• C)Investors should be concerned about the corporation's ability to earn profits and pay dividends in the future.
• D)If a cash dividend is declared by the board of directors, each stockholder will receive a different dollar amount depending on the length of time they have owned their shares.
• E)Corporate dividends are always paid in cash.

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Definitions:

Hunting Cabin

A small, often rustic dwelling used as a base by hunters during hunting season.

Deposit

A deposit is a sum of money placed in a bank account or paid as an assurance for the fulfillment of a contract, which may be refundable under certain conditions.

Power of Attorney

A legal document authorizing one person to act on another's behalf in legal matters or decisions.

Seal

Historically, a device or substance used to stamp or mark documents, implying authenticity and intention to be legally bound.