Which of the Following Statements, If Any, Is Characteristic of Constructive

question 113

Multiple Choice

Which of the following statements, if any, is characteristic of constructive dividends?

• A)They must be available to the shareholders on a pro rata basis.
• B)They can occur even if the corporation has no earnings and profits.
• C)They must be formally declared and paid (i.e., declaration date, record date, payment date).
• D)They are not deductible by the corporation.
• E)None of the above.

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Definitions:

Average Level

A mean or typical value obtained by dividing the total of all observed values of a variable by the number of observations.

Discouraged Workers

Individuals who are not actively seeking employment due to believing that no jobs are available for them or there are no jobs for which they would qualify.

Frictional Unemployment

Unemployment that occurs when people are between jobs or are entering the workforce for the first time.

Imperfect Information

A situation in which parties in a transaction have unequal or inadequate information, leading to market inefficiencies.