Which of the Following Statements Is Correct in Regards to the Effect

question 58

Multiple Choice

Which of the following statements is correct in regards to the effect on share capital?

• A) Cash dividends increase share capital.
• B) Stock dividends increase share capital.
• C) Stock splits increase share capital.
• D) They all have no effect on share capital.

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Definitions:

Bundle

A combination of various goods and services selected by consumers, used in economics to analyze choices and preferences.

Giffen Good

A product that people consume more of as the price rises, violating the basic law of demand in economics.

Prices Change

A variation in the market price of goods and services over time, influenced by factors such as supply and demand, inflation, or government policy.

Bananas

Bananas are a type of edible fruit, botanically a berry, produced by several kinds of large herbaceous flowering plants in the genus Musa.