Scott SpA Has a General Dividend Policy Whereby It Pays

question 75

Multiple Choice

Scott SpA has a general dividend policy whereby it pays a constant annual dividend of €1 per share of.The firm has 1,000 shares outstanding.The company:

• A)must always show a current liability of €1,000 for dividends payable.
• B)is obligated to continue paying €1 per share per year.
• C)will be declared in default and can face bankruptcy if it does not pay €1 per year to each shareholder on a timely basis.
• D)has a liability which must be paid at a later date should the company miss paying an annual dividend payment.
• E)must still declare each dividend before it becomes an actual company liability.

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Definitions:

Social Learning

the acquisition of behaviors and skills through the observation of and interaction with others in a social context.

Negative Reinforcement

A technique used in behavior modification that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Respondent Behavior

A behavioral response that occurs naturally as a reaction to a specific stimulus, without the necessity of learning or prior experience.

Secondary Reinforcement

A form of reinforcement where a stimulus gains its reinforcing power through its association with a primary reinforcer.