A Liquidating Dividend Is

question 175

Multiple Choice

A liquidating dividend is:

• A)Only declared when a corporation closes down.
• B)A return of a part of the original investment back to the stockholders.
• C)Not allowed under federal law.
• D)Only paid in assets other than cash.
• E)Only paid in shares of stock.

---

Definitions:

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Saving

The process of setting aside a portion of current income for future use, either by depositing money in a bank or purchasing financial instruments.

Benefits-Received Principle

A theory of fairness holding that taxpayers should contribute to government (in the form of taxes) in proportion to the benefits they receive from public expenditures.

Public Goods

Items whose consumption is not depleted by an additional consumer and from which individuals cannot be excluded from using.