Which of the Following Statements Is Most Correct

question 34

Multiple Choice

Which of the following statements is most correct?

• A) One reason that companies tend to avoid stock repurchases is that dividend payments are taxed more favorably than stock repurchases.
• B) One advantage of dividend reinvestment plans is that they allow shareholders to avoid paying taxes on the dividends that they choose to reinvest.
• C) If a company announces a 2-for-1 stock split and the overall value of the firm remains unchanged, the company's stock price must have doubled.
• D) All of the statements above are correct.
• E) None of the statements above is correct.

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Definitions:

Charismatic authority

Describes a form of leadership where followers attribute extraordinary leadership abilities or qualities to a leader, often seen as revolutionary or heroic.

Bureaucratic organizations

Organizations structured in a hierarchical manner, emphasizing formal procedures, rules, and a clear division of responsibilities.

Occupational mobility

The ability of individuals to change their occupation or move up within their current career field.

Geographic mobility

The movement of individuals or populations from one location to another, often for reasons related to employment, housing, or quality of life.