The Relationship Between the Disburse Cash and Issue Stock Events

question 10

Multiple Choice

The relationship between the Disburse Cash and Issue Stock events is modeled as being M:N for all except which of the following reasons?

• A)One dividend check could be paid to shareholders that purchased stock at different times.
• B)Shareholders could receive several dividend checks over time.
• C)Checks must be written to each shareholder for dividend payments.
• D)Stock can be issued more than once over a period of time.

---

Definitions:

Long-Term Debt

Financial obligations of a borrowing entity that are due for repayment in more than one year's time.

Fixed Stream of Income

Income generated from investments that provide a constant amount of money at regular intervals.

Hang Seng

Refers to the Hang Seng Index, a stock market index in Hong Kong representing the performance of the largest companies listed on the Hong Kong Stock Exchange.

Stock Markets

Platforms where shares of publicly-held companies are bought and sold, contributing to the allocation of capital in an economy.