Which One of the Following Statements Is True

Multiple Choice

Which one of the following statements is true?

A) Board members are appointed by a company's management.
B) Stockholders receive a tax break on dividend income.
C) Investors should be concerned about the corporation's ability to earn profits and pay dividends in the future.
D) If a cash dividend is declared by the board of directors, each stockholder will receive a different dollar amount depending on the length of time they have owned their shares.
E) Corporate dividends are always paid in cash.