All of the Following Statements Are Correct Except

question 109

Multiple Choice

All of the following statements are correct except

• A) Dividends are paid out of profits.
• B) Dividend payments must be approved by the stockholders.
• C) A dividend can be a distribution of money, but it can also be stock or other property.
• D) Dividends are not mandatory.
• E) Utility companies typically distribute a higher percentage of earnings than rapidly growing firms.

---

Definitions:

Advertisement Wear-out

The phenomenon where the effectiveness of an advertisement declines with increased exposure to it.

Negative Advertisements

Promotional messages that focus on the unfavorable aspects of a competitor or their products rather than highlighting one's own positive attributes.

Negative Advertisements

Promotional messages that focus on the drawbacks of competitors or emphasize adverse outcomes of not using a product or service.

Negative Campaigning

A strategy used by political candidates to criticize their opponents, often by focusing on their shortcomings or unpopular policies, with the aim of influencing voter perceptions and gaining an advantage.