Which of the Following Statements Is True

question 23

Multiple Choice

Which of the following statements is true?

• A)For public companies, dividend entitlements are the same for all shares within a class, unless the company's constitution or a special resolution provides otherwise.
• B)For proprietary companies, there is a replaceable rule that, subject to the agreement under which the shares were issued, the directors may pay dividends as they see fit.
• C)For no liability companies, all ordinary shares have the same dividend entitlement, but there is no right to a dividend if a call has been made that is still outstanding.
• D)all of the above

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Definitions:

Sticky Prices

A situation in economics where the prices of goods and services are slow to respond to changes in the supply and demand.

Herfindahl-Hirschman Index

A measure of market concentration to assess the level of competition within an industry.

Degree of Concentration

A measure of the extent to which a small number of firms or entities dominate in a particular market or industry.

American Economy

The economic system of the United States, characterized by a mixed economy with private and public enterprise.