Which of the Following Statements,if Any,is Characteristic of Constructive Dividends

question 102

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 these.

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Definitions:

Relatively Permanent

A term often used in psychology to describe changes or effects that endure over time, although not necessarily without the possibility of change.

Classical Conditioning

A conditioning method where the continuous association of two stimuli results in a response initially provoked by the second stimulus becoming evoked by the sole presentation of the first stimulus.

Ivan Pavlov

A Russian physiologist best known for his work in classical conditioning, demonstrating the learning process through the Pavlov's dogs experiment.

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.