Which of the Following Statements Is Most Correct

question 53

Multiple Choice

Which of the following statements is most correct?

• A) "New-stock" dividend reinvestment plans are similar to stock dividends because they both increase the number of shares outstanding but don't change the total equity of a firm.
• B) Investors receiving stock dividends must pay taxes on the new shares at the time the stock dividends are received.
• C) Stockholders pay no income tax on dividends reinvested in a dividend reinvestment plan.
• D) Both statements a and b are correct.
• E) None of the statements above is correct.

---

Definitions:

Weak Superegos

Refers to individuals with underdeveloped or ineffective superegos, resulting in difficulties in regulating impulses and adhering to societal norms and morals.

Karen Horney

A German psychoanalyst known for her theories on neurosis, personality development, and the concept of "basic anxiety."

Neo-Freudian

Pertaining to theorists who were influenced by and extended Freud's work, typically placing more emphasis on social and cultural factors than on innate biological drives.

Denial

A psychological defense mechanism in which confrontation with a personal problem or with reality is avoided by denying the existence of the problem or reality.