A Pro-Rata Distribution of Additional Shares of Stock to the Current

question 57

Multiple Choice

A pro-rata distribution of additional shares of stock to the current owners of the stock is which of the following?

• A) Stock dividend
• B) Stock split
• C) Payment date
• D) Ex-dividend

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Definitions:

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of expansion, peak, contraction, and trough.

Expansion Phase

Refers to the period in a business cycle or economy where growth and production increase and the overall economic activity rises.

Employment

A formal relationship between an individual and an employer where the individual performs tasks in exchange for compensation, such as salary or wages.

Economy's Ability

Refers to the capacity of an economy to produce goods and services, generate employment, and sustain economic growth.