A______ Is Commonly Created During Good Times or When New

question 44

Multiple Choice

A______ is commonly created during good times or when new management takes over to turn around a company that experienced poor performance under the previous management.

• A)sinking fund
• B)provident fund
• C)reserve fund
• D)pension fund

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Definitions:

Dividend

A distribution of profits by a company to its shareholders, typically in the form of a payment.

Cumulative Preferred Stock

Preferred stock where dividends accumulate if not paid as scheduled, needing to be fulfilled before common stock dividends.

Common Stock

A type of security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits in the form of dividends.

Dividend

A disbursement from a corporation to its stockholders, often derived from earnings.