Which of the Following Is True of Dividend Payments

question 7

Multiple Choice

Which of the following is true of dividend payments?

• A)Dividends have to be paid to shareholders even if paying them makes the company insolvent.
• B)A company cannot,in any case,distribute assets in the form of cash or property from capital surplus.
• C)A treasurer is bound to hand out cash to the shareholders if the board of directors declares a dividend payable on the date of the board meeting.
• D)A company can revoke a share dividend as long as the shares have not been issued.
• E)Directors have the discretion to declare and distribute dividends in excess of those allowed by the articles of incorporation without being liable to the corporation.

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Definitions:

Accommodation

In cognitive development, the process of altering one's existing schemas or ideas as a result of new information or experiences.

Schema

A cognitive framework or concept that helps organize and interpret information, forming the basis of understanding experiences.

Secondary Circular Reactions

Secondary circular reactions are a developmental phase in infants, occurring around 4-8 months, characterized by the repetition of actions that produce effects outside the body, showing an early awareness of cause and effect.

Sensorimotor

The first stage in Piaget's theory of cognitive development, where infants learn through interacting with the environment, from birth to about 2 years of age.