Which of the Following Statements Is Correct

question 213

Multiple Choice

Which of the following statements is correct?

• A)Stock splits and stock dividends both reduce the market price of a share,but only stock splits reduce the par value of a share.
• B)Stock splits and stock dividends both reduce the market price of a share and the par value of a share.
• C)Stock splits and stock dividends both reduce the market price of a share,but only stock dividends reduce the par value of a share.
• D)Stock splits and stock dividends both reduce the market price of a share and reduce Retained Earnings.

Understand the concept and implications of mutual funds and ETFs in investment.

Recognize and calculate the net present value (NPV) of an investment.

Distinguish between International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP).

Explain the role and importance of transfer pricing in multinational corporations.

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Definitions:

Mutual Respect

A reciprocal understanding and valuing of the rights, beliefs, and practices of another person or group, fostering positive interaction and cooperation.

Teamwork

Collective effort by a group of individuals working together to achieve common goals, characterized by mutual support and collaboration.

Productivity

A measure of the effectiveness and efficiency with which individuals, companies, or economies produce goods and services.

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a persistent pattern of disruptive and violent behaviors.