Which of the Following Statements Is Correct Concerning Stock Dividends

question 24

Multiple Choice

Which of the following statements is correct concerning stock dividends?

• A) Common stock dividends cannot be paid if preferred stock dividends are in arrears.
• B) Preferred stock dividends cannot be paid if common stock dividends are in arrears.
• C) Common and preferred dividends must be paid simultaneously.
• D) No stock dividends can be paid if the firm has no cash.

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Definitions:

American Federation Of Labor

A national federation of labor unions in the United States, founded in 1886, known for advocating for better working conditions, wages, and hours for workers.

Skilled Workers

Individuals who have acquired through training or experience the technical skills necessary for performing specific, complex job tasks.

National Labor Relations Act

A 1935 U.S. law that protects the rights of employees and employers, encourages collective bargaining, and curtails certain private sector labor and management practices.

Enforcement Arm

Refers to the means or mechanism by which laws, regulations, or policies are implemented and ensured compliance with, often involving legal or coercive action.