Which of the Following Statements, If Any, Is Characteristic of Constructive

question 113

Multiple Choice

Which of the following statements, if any, is characteristic of constructive dividends?

• A)They must be available to the shareholders on a pro rata basis.
• B)They can occur even if the corporation has no earnings and profits.
• C)They must be formally declared and paid (i.e., declaration date, record date, payment date).
• D)They are not deductible by the corporation.
• E)None of the above.

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Definitions:

Labor Relations

The field that studies the laws, norms, and practices regulating the interactions between employees, employers, and their respective representatives.

Injunctions

Legal orders issued by a court that either restrain a party from doing certain actions or compel them to perform specific acts.

Unions

Organizations that represent workers in various industries to negotiate with employers on wages, hours, benefits, workplace safety, and other employment terms and conditions.

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