Which One of These Statements Is True

question 47

Multiple Choice

Which one of these statements is true?

• A)Transaction and issue costs have no effect on dividend policy.
• B)If the shareholders of an acquired company receive shares in the acquirer rather than cash,they avoid paying taxes.
• C)Stock dividends provide shares that can be used for the exercise of shares under an employee stock option plan.
• D)Individual investors desiring current income need to invest solely in high-dividend stocks.
• E)In the United States,stock sales have exceeded stock repurchases every year since 2008.

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Definitions:

Executive Council

A body composed of the executive members of a government or organization, responsible for making decisions and overseeing the administration of policies and strategies.

Inherent Powers

Powers that are not explicitly stated but are assumed to exist due to being necessary for a government to perform its duties and functions.

Implied Powers

Powers not explicitly stated in the U.S. Constitution but inferred from the enumerated powers that allow the government to perform its duties.

National Sovereignty

The authority of a state to govern itself or another state, emphasizing independence and autonomous rule.