Which of the Following Statements About Stock Dividends Is True

question 6

Multiple Choice

Which of the following statements about stock dividends is true?

• A)Stock dividends increase the number of shares outstanding.
• B)Stock dividends are more valuable than stock splits.
• C)Stock dividends are recorded as a reduction in cash.
• D)Stock dividends are dividends given in the form of stock from another company.

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Definitions:

Price Signals

Indications to consumers and producers about the scarcity or abundance of a good or service, guiding their economic decisions.

Centrally Planned Economies

Economies where the government or central authority makes all the decisions about what goods and services are produced, how they are produced, and who gets them.

Innovation Lagged

A situation where there is a delay or time lag between the development of a new technology or idea and its implementation or widespread use.

Production Targets

Specific goals set for the quantity of products to be produced within a certain time frame.