Which Kind of Dividend Typically Pays Dividends with Additional Shares

question 40

Multiple Choice

Which kind of dividend typically pays dividends with additional shares of the corporation's stock?

• A) property dividend
• B) stock dividend
• C) liquidating dividend
• D) scrip dividend

---

Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, such that no single party can dictate the market price.

Long-Run Cost

The total cost of production when all inputs, including both fixed and variable costs, are considered fully adjustable.

Economies Of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies

Negative effects on costs that occur as a business expands, typically resulting from inefficiencies that stem from managerial and operational challenges.