If the Total Assets of a Firm Are Unaffected by a Stock

question 109

Multiple Choice

If the total assets of a firm are unaffected by a stock dividend, then:

• A) the stock should retain the same price per share.
• B) stock dividends should be preferred by corporations over cash dividends.
• C) an investor's wealth should not be changed by the dividend.
• D)only bondholders benefit from stock dividends.

Distinguish between different types of performance-based pay.

Evaluate the impact of lump-sum rewards versus ongoing incremental pay increases.

Discuss the strategic objectives of performance-based pay systems in attracting, retaining, motivating, and rewarding employees.

Explore the criticisms and disadvantages of merit pay systems.

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Definitions:

Cold Emotion

Emotions that are not driven by intense feelings or passions and are often characterized by detachment or rational assessment.

Physiological Results

Physiological results are outcomes or responses in the body to various stimuli, conditions, or interventions.

Intense Fear

A strong emotional response to perceived or real danger, characterized by feelings of anxiety and dread.

Extrinsic Reward

A reward that comes from outside an individual, such as money, fame, grades, and praise, which motivates behavior.