A Liquidating Dividend Is

question 219

Multiple Choice

A liquidating dividend is:

• A)Only declared when a corporation closes down.
• B)A return of a portion of the capital contributed back to the stockholders.
• C)Not allowed under federal law.
• D)Only paid in assets other than cash.
• E)Only paid in shares of stock.

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Definitions:

Discovery

Discovery is the legal process by which parties involved in a dispute disclose to each other relevant documents and information not previously known in preparation for legal proceedings.

Depositions

Out-of-court testimonies given under oath by parties or witnesses in a legal case, used as evidence during trial.

Legal Entitlement

A right given by law to an individual or entity to receive or do something.

Remedy

A means of legal reparation or correction, available through court proceedings, for a wrong or harm suffered.