Which of the Following Is a Reason Why a Company

question 9

Multiple Choice

Which of the following is a reason why a company would do a share split?

• A)To provide the shareholders with something of value, when the company cannot afford a cash dividend
• B)To generate additional sales revenues
• C)To defend against a hostile takeover
• D)To reduce the market price at which the share is trading

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Definitions:

Contingent Cost

Costs that may occur depending on the outcome of a future event or condition.

Recycling of Packaging

The process of reprocessing used packaging materials into new packaging products, contributing to sustainability and waste reduction.

Public Awareness

The extent to which the general population is informed about issues, campaigns, or policies.

United States EPA

The Environmental Protection Agency, responsible for the protection of human health and the environment in the U.S.