Which of the Following Is TRUE of Dividends

question 168

Multiple Choice

Which of the following is TRUE of dividends?

• A) Dividends are a distribution of cash, stock, or other property to stockholders.
• B) Dividends increase assets and decrease total stockholders' equity of a corporation.
• C) Dividend payments decrease paid-in capital.
• D) Dividend payments increase stockholders' equity.

Understand the impact of changes in variable costs on monopolist’s pricing and output decisions.

Understand the conditions under which a firm earns economic profits.

Differentiate between the characteristics and operating conditions of pure monopolies versus competitive markets.

Analyze the decision-making process of firms regarding whether to continue operation or shut down in the short run.