The final distribution of cash to shareholders after a company has been sold off or discontinued operations is called a ________ dividend.

Question

Quizplus · Accepted Answer

A liquidating dividend is paid when a company is winding up its operations or selling off its assets. This type of dividend is paid out to shareholders after all debts and obligations have been settled, and it represents the final distribution of the company's cash. Therefore, B) liquidating dividend is the best choice for the given scenario.

The Final Distribution of Cash to Shareholders After a Company