Which Statement Is Correct Regarding Dividend Entitlement

question 39

Multiple Choice

Which statement is correct regarding dividend entitlement?

• A)Cumulative preferred shares do not have any rights to missed dividend payments.
• B)Non-cumulative preferred shares must be paid all missed dividend payments when dividends are declared.
• C)A corporation need only pay dividends when it declares them to be payable.
• D)A company can avoid paying dividends in arrears on cumulative preferred shares if it is to pay dividends on common shares.

---

Definitions:

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and a tendency towards negative emotions.

Major Traits

Key characteristics or qualities that significantly define a person or concept.

Low-level Managers

Managers who oversee the day-to-day operations and activities of an organization, often directly supervising frontline employees and implementing short-term plans.

Middle-level Managers

Managers who operate between the senior management and the operational levels of an organization, responsible for executing organizational policies and strategies at the departmental level.