All of the Following Statements Are Correct Except

question 57

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, stock, or other property.
• D) Dividends are not mandatory.
• E) Utility companies typically distribute a higher percentage of earnings than rapidly growing firms.

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Definitions:

Total Cost

The complete amount of costs incurred by a business in the production of goods or services, including both fixed and variable costs.

Marginal Cost

The financial outlay required to produce an additional unit of a product or service.

Total Fixed Cost

The sum of all costs that do not change with the level of output or activity.

Total Variable Cost

Total Variable Cost is the sum of all costs that vary directly with the level of production, such as materials and labor costs.