Dividend refers to a portion of a corporation's profits that are distributed to its shareholders, usually in the form of cash payments or additional shares of stock. It is not a regular payment made to lenders or a legal claim on the assets of a bankrupt corporation, nor is it a prepayment of a legal obligation.

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Dividend Refers to

Question 87

Multiple Choice

Dividend refers to

A) a corporation's regular payments to lenders.
B) part of the revenue given to stockholders of a corporation.
C) a lender's legal claim on the assets of a bankrupt corporation.
D) a prepayment of a corporation's legal obligation.

Correct Answer: