Which Statement Is Correct

question 2

Multiple Choice

Which statement is correct?

• A)Dividends are never discretionary payments.
• B)A corporation need only pay dividends when it declares them to be payable.
• C)A company can avoid a cumulative dividend on preferred shares if it declares dividends on common shares.
• D)Companies must pay the shareholders interest to compensate for the time value of money lost on the deferral of dividend payments.

---

Definitions:

Four Body Humors

An ancient theory suggesting that human health and temperament are governed by four bodily fluids: blood, phlegm, black bile, and yellow bile.

Problem in Living

Difficulties and challenges that individuals face in daily life, which may include financial issues, relationship problems, or work-related stress.

Abnormality

A deviation from the norm that may signal the presence of a disorder, disease, or undesirable condition.

Trephination

An ancient operation in which a stone instrument was used to cut away a circular section of the skull, perhaps to treat abnormal behavior.