Which of the Following Stock Distributions Would Be Tax-Free to the Shareholder

question 17

Multiple Choice

Which of the following stock distributions would be tax-free to the shareholder?

• A)A 2-for-1 stock split to all holders of common stock.
• B)A stock distribution where the shareholder could choose between cash and stock.
• C)A stock distribution to all holders of preferred stock.
• D)A 2-for-1 stock split to all holders of common stock and a stock distribution to all holders of preferred stock are tax-free to the shareholder.

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Definitions:

Job Enrichment

A method of motivating employees by providing them with more variety, autonomy, and responsibility in their roles.

Task Identity

The degree to which a job requires completion of a whole and identifiable piece of work.

Employees' Commitment

The level of enthusiasm and dedication an employee has towards their job and company.

Organizational Goals

Objectives or targets that an organization aims to achieve, which guide its operational and strategic planning.