Traditionally, a Recession of Defined by Declining Real GDP Over

question 12

Multiple Choice

Traditionally, a recession of defined by declining Real GDP over a period of at least

• A)one calendar quarter.
• B)one calendar year.
• C)two consecutive calendar quarters.
• D)two consecutive calendar years.

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Definitions:

Retained Earnings

The portion of net income that is not distributed to shareholders and is instead reinvested in the business.

Dividends In Arrears

Dividends on preferred stock that have not been paid in the scheduled time but are owed to preferred shareholders.

Cumulative Preferred Shares

Cumulative Preferred Shares are a type of preferred stock where dividends accumulate if not paid out, ensuring shareholders are paid past dividends before common shareholders.

Cash Dividend

A payment made by a corporation to its shareholders, usually in the form of cash, as a share of the company's current earnings.