When a Corporation Pays Dividends It

question 69

Multiple Choice

When a corporation pays dividends it:

• A)does not affect the cash flow statement.
• B)is shown as an investing activity.
• C)is shown as a financing activity.
• D)is shown as an operating activity.

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Definitions:

Cournot Equilibrium

A model of market competition in which firms choose their output levels simultaneously and independently to maximize profit with the assumption of no further entry by other firms.

Marginal Cost

Marginal cost denotes the change in the total expense incurred by a firm when its output is increased by a single unit.

Major League Baseball

A professional baseball organization consisting of teams in the United States and Canada, representing the sport's highest level of play.

Ticket Sales

The process of selling admission to events such as concerts, movies, or sports games to consumers.