If Management Wishes to "Capitalize" Part of the Earnings, It

question 78

Multiple Choice

If management wishes to "capitalize" part of the earnings, it may issue a

• A)cash dividend.
• B)share dividend.
• C)property dividend.
• D)liquidating dividend.

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Definitions:

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 to prevent anti-competitive practices, monopoly, and to promote competition.

Federal Legislation

Laws passed by the federal government of a country, which apply to the entire nation and supersede local laws in areas of federal authority.

Restraint of Trade

A legal concept that seeks to enforce reasonable limitations on business practices to encourage competition and prevent monopolies.

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair or deceptive business practices, including antitrust violations.