Dividend Payments That Are the Result of Liquidation of Assets

question 27

Multiple Choice

Dividend payments that are the result of liquidation of assets are known as ________ and are taxed as capital gains.

• A)private earnings
• B)alternate payments
• C)return of capital
• D)rolling dividends

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Definitions:

Price-Setting Process

The approach or methods used by businesses to determine the selling price of their products or services, taking into account costs, demand, and competitive prices.

Market Segmentation

The practice of segregating a market into unique segments of consumers with diverse needs, attributes, or actions who may need different products or marketing tactics.

Cost-Volume-Profit

An accounting method used to determine the effects of changes in costs and volume on a company's profits.

Marginal Analysis

An examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.