Which of the Following Statements Is True

question 103

Multiple Choice

Which of the following statements is true?

• A)Stock splits and stock dividends both reduce the market price of a share,but only stock splits reduce the par value of a share.
• B)Stock splits and stock dividends both reduce the market price of a share and the par value of a share.
• C)Stock splits and stock dividends both reduce the market price of a share,but only stock dividends reduce the par value of a share.
• D)Stock splits and stock dividends both reduce the market price of a share and reduce retained earnings.

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Definitions:

Succession Planning

The strategic process of identifying and developing new leaders who can replace old leaders when they leave, retire or die, ensuring continuity in leadership and operations.

Successor

A person or entity that follows and takes over a position, role, or office from another, often in a planned and designated manner.

Groomed

Prepared or trained for a specific purpose, often with care and attention to detail.

Ready

Prepared or in a suitable state for an activity, action, or situation.