A Corporation May Issue a Stock Dividend for Which of the Following

question 62

Multiple Choice

A corporation may issue a stock dividend for which of the following reasons?

• A) May want to increase permanent capital in the business
• B) May want to decrease market value
• C) May be short of cash and unable to pay a cash dividend
• D) All of the above are correct.

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Definitions:

Number Of People

A quantitative measure of the people involved or affected in a particular context.

Positive Externalities

Benefits that are enjoyed by a third-party or society as a result of an economic transaction.

Producing Firm

An entity or company involved in the creation of goods or services to be offered to consumers.

Decision Makers

Individuals or groups responsible for making choices that determine the course of actions to be followed.