Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'qualified dividend'?

A. dividend that is paid to shareholders periodically
B. dividend that falls under capital gains tax rates that are lower than the income tax rates on unqualified (ordinary) dividends
C. commitment to distribute a portion of earnings to shareholders, similar to a dividend but often with a fixed payment amount and schedule
D. dividend that is paid to shareholders on a one-time basis

Answer: dividend that falls under capital gains tax rates that are lower than the income tax rates on unqualified (ordinary) dividends