Dividends Per Share

question 284

Multiple Choice

Dividends per share:

• A) Increases as the net income increases as long as the number of shares outstanding remains constant.
• B) Decreases as the number of shares outstanding decrease, all else constant.
• C) Are inversely related to the earnings per share.
• D) Are based upon the dividend requirements established by Generally Accepted Accounting Procedures.
• E) Are equal to the amount of net income distributed to shareholders divided by the number of shares outstanding.

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Definitions:

Organizational Buying Behavior

Refers to the purchasing behavior and decision-making process of organizations, focusing on how companies acquire products and services for operational, manufacturing, or reselling purposes.

Fewer Customers

Fewer customers indicates a reduction in the number of individuals or entities purchasing from a business, which can impact sales and profitability.

Nonprofit Organization

An entity that operates for the promotion of a public or social benefit rather than for the profit or gain of its owners or investors.

Buying Objective

The specific goals or intentions that motivate a consumer or organization to make a purchase, such as solving a problem, fulfilling a need, or obtaining value.