A Liquidating Dividend Is

question 173

Multiple Choice

A liquidating dividend is

• A) a dividend that exceeds current retained earnings.
• B) normally declared when a corporation is experiencing large profits.
• C) a dividend that exceeds current profits.
• D) legal in most states.

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Definitions:

Mitigate

To lessen a loss, for example, by victims of a breach, who have a duty to take all reasonable steps to minimize losses suffered.

Specific Performance

A legal remedy in contracts law requiring a party to fulfill their obligations under the contract, as opposed to paying damages.

Transfer Property

The act of legally changing ownership of real estate, assets, or other property from one party to another.

Luxury Home

A high-end, well-appointed residential property that offers luxurious living spaces and amenities.