Which of the following types of dividend is most likely to be used to distribute the revenue from a one-time sale of a large asset?

Question

Quizplus · Accepted Answer

A special dividend is most likely to be used to distribute the revenue from a one-time sale of a large asset as it is a one-time payment made to the shareholders in addition to the regular dividend. It is used to distribute profits that are not a part of the company's normal operations such as the sale of a large asset. Regular cash dividends are distributed on a regular basis over a long period of time, extra dividends are irregular payments that are not necessarily tied to a specific event or occasion, and liquidating dividends are paid when a company goes out of business or sells all of its assets.

Which of the Following Types of Dividend Is Most Likely