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.

Understand the distinctions between par-value and no-par-value shares and their implications on market value.

Differentiate the roles and rights of shareholders and debenture holders in a corporation.

Describe the restrictions on share transferability in closely held corporations.

Recognize the liability limitations of shareholders regarding corporate debts.

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Definitions:

Chase Manhattan Bank

A notable financial institution, now part of JPMorgan Chase & Co., known for its banking, financial services, and historical significance in the industry.

Global Stratification

The hierarchical arrangement of individuals and countries around the world, according to socioeconomic status, power, and wealth.

International Telecommunication

Refers to the global exchange of information through electronic means, such as phone calls, emails, and satellite broadcasts.

International Trade

The exchange of goods and services across international borders or territories.