Which of the following types of dividend is used to distribute any remaining value when a company's assets are being sold as the company is terminated?

Question

Quizplus · Accepted Answer

A liquidating dividend is used to distribute any remaining value when a company's assets are being sold as the company is terminated. Regular cash dividends are paid out of a company's profits, while extra and special dividends are typically one-time payments made in addition to regular dividends.

Which of the Following Types of Dividend Is Used to Distribute