Stock Splits and Stock Dividends Increase the Earning Capacity of the Firm

question 19

True/False

Stock splits and stock dividends increase the earning capacity of the firm.

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Definitions:

Plant Upgrades

Investments made to improve the efficiency, capacity, or environmental impact of industrial facilities.

Trade Unionism

A labor movement where workers unite to negotiate with employers over wages, benefits, and working conditions.

Founding

The process of establishing something, often referring to the creation of an institution, organization, or country.

Collective Bargaining

The act of discussing and reaching mutual agreements on employment terms such as salaries, working environment, benefits, and various employee rights and compensations between employers and their employees' representatives.