Which of the Following Statements Is True

question 27

Multiple Choice

Which of the following statements is true?

• A)Executives and other insiders benefit most by being able to tender their shares in an open market repurchase since they usually are privy to information that is not available to the
• General public.
• B)Dividend payments are attractive to executives who hold many executive stock options that were awarded to them by their firms.
• C)Empirical research suggests that small, retail investors prefer stock repurchases to dividend payments.
• D)If a firm does not pay dividends, some institutional investors are prohibited from investing it the firm's equity.

---

Definitions:

Perceptual Distortion

Perceptual distortion refers to inaccuracies or misinterpretations of sensory input, caused by biases, preconceptions, or psychological influences, affecting how information is perceived and processed.

Intermittent Reinforcement Schedule

A conditioning schedule in which a reward or punishment (reinforcement) is not administered every time the desired response is performed, leading to more resistant behavioral patterns.

Fixed Interval Schedule

A reinforcement schedule in operant conditioning where rewards or consequences are presented at fixed time intervals, promoting a specific pattern of behavior over time.

Continuous Reinforcement

A reinforcement schedule in which a reward occurs after each instance of a behavior or set of behaviors.