Which of the Following Statements Is Incorrect

question 111

Multiple Choice

Which of the following statements is incorrect?

• A) Stock dividends increase the number of shares and increase the total market value of owner's equity.
• B) Stock splits increase the number of shares but do not increase the total market value of owner's equity.
• C) In a stock dividend, the par value of the stock on the company's books is not altered.
• D) In a stock split, the par value of the stock on the company's books is altered.

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Definitions:

Mimetic Isomorphism

A process by which organizations emulate others in their field or industry, often in response to uncertainty or to gain legitimacy.

Coercive

Relating to or involving force or compulsion, often used in the context of power or authority.

Institutional

Pertaining to established laws, practices, or customs, or to the organization or foundation itself.

Mocking

The act of making fun of someone or something in a cruel or harsh manner, often by copying them in a way that aims to entertain or irritate.