In Which of the Following Ways Are Dividends Allocated

question 13

Multiple Choice

In which of the following ways are dividends allocated?

• A) Proportionately to the rights attached to the shares.
• B) Discretionally by the board of directors.
• C) Uppermost to the most important shareholders.
• D) None of these

---

Definitions:

Supply Price

The minimum price at which a producer is willing to sell a particular quantity of a good or service.

Price Ceiling

A legal maximum price that can be charged for a good or service.

Producer Surplus

The differentiation between the amount at which producers are content to sell a good or service and their actual revenue.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable through market means, often due to market failures or intervention.