A Corporation That Has an Automatic Reinvestment Plan

question 88

Multiple Choice

A corporation that has an automatic reinvestment plan:

• A) forces shareholders to automatically reinvest dividends in the company.
• B) never physically pays out declared dividends.
• C) helps investors plan their investment portfolio.
• D) gives shareholders the option to automatically reinvest dividends in the company.

---

Definitions:

Substitute Product

A product that can be used in place of another product, satisfying the same consumer needs or wants.

LRMC

Long-Run Marginal Cost, which refers to the additional cost of producing one more unit of a good or service when all inputs are variable in the long term.

Increase Traffic

Refers to the actions and strategies deployed to attract more visitors or users to a website, online platform, or physical location.

Parking Rates

The fees charged for the use of parking spaces, often varying based on location, time, and demand.