The Risk Behind Self-Insurance Is That If There Aren't Sufficient

question 9

True/False

The risk behind self-insurance is that if there aren't sufficient funds set aside,the business will suffer losses.

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Definitions:

Cash Dividend

A disbursement by a company to its shareholders, often from the profits earned.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders, usually in proportion to their existing holdings, instead of paying a cash dividend.

Small Stock Dividend

A dividend paid in the form of additional stock shares rather than cash, usually less than 20-25% of the existing shares.

Common Stock Dividends Distributable

An amount declared by a company’s board of directors to be distributed to common stockholders, recorded as a liability until paid.