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.

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Definitions:

Organizational Behavior

The study of how individuals and groups interact within organizations and the impact of these behaviors on performance and structure.

Representation

The action of speaking or acting on behalf of someone or the state of being so represented.

Leadership

The ability to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members.

Coordination

The process of organizing people or groups so that they work together properly and well.