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:

Economic Growth

The increase in the market value of the goods and services produced by an economy over time, often measured as the percent rate of increase in the real gross domestic product (GDP).

Technological-Economic Growth

The increase in economic output (growth) driven by technological innovations and advancements, leading to improved efficiencies and productivity.

Spaceship-Earth Strategy

A metaphorical concept emphasizing Earth's finite resources and the need for sustainable environmental management.

Stewardship

The responsible management and care of resources or property, often with a focus on conservation and sustainability.