When all or a portion of shareholders' capital investments are returned to them, this is called a
A) return dividend.
B) liquidating dividend.
C) stock dividend.
D) investment dividend.

Question

Quizplus · Accepted Answer

When a company returns some or all of the shareholders' capital investments, it is known as a liquidating dividend. A return dividend, stock dividend, and investment dividend are not the correct terms for this type of payment.

When All or a Portion of Shareholders' Capital Investments Are