CSEET · Business Communication · Common Business Terminologies
Which of the following correctly matches the term with its meaning?
Dividend is the periodic share of a company's profit paid to its shareholders. The other pairs are wrong: premium is issue above face value, a debenture is a debt instrument and not ownership, and equity represents ownership rather than a fixed-interest loan.
- ADividend – the periodic share of profit paid to shareholdersCorrect
- BPremium – the amount by which a share is issued below its face value
- CDebenture – an ownership share in the company
- DEquity – a loan acknowledgement carrying fixed interest
Explanation
A dividend is the share of profit distributed to shareholders. Premium is the excess over face value, not below it. A debenture is a debt instrument, and equity represents ownership, so the last two definitions are swapped.
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