Which of the Following Statements in Relation to Dividends Is

question 55

Multiple Choice

Which of the following statements in relation to dividends is true?

• A)Dividends represent drawings by the owners (shareholders)of the company.
• B)Dividends can be paid out of any equity account.
• C)Shareholders must be paid an annual dividend regardless of the type of share they hold.
• D)A company cannot declare both an interim and a final dividend.

---

Definitions:

Substitutes

Products or services that can be used in place of each other, where the increase in price of one leads to an increase in demand for the other.

Complements

Items or services used together, where the use of one increases the demand for the other.

Consumer Surplus

The variance between the aggregate amount consumers intend and can afford to pay for a good or service and the total they actually do pay.

Supply Curve

A supply curve is a graph that shows the quantity of goods that producers are willing to sell at different prices, typically depicting a positive relationship between price and quantity supplied.