A Corporation That Has an Automatic Reinvestment Plan

question 22

Multiple Choice

A corporation that has an automatic reinvestment plan:

• A) forces shareholders to automatically reinvest dividends in the company.
• B) never physically pays out declared dividends.
• C) gives shareholders the option of purchasing either debt or equity shares.
• D)gives shareholders the option to invest in additional shares cost-free.

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Definitions:

Manifests Honesty

The overt demonstration of honesty by individuals, characterized by truthfulness, transparency, and integrity in actions and statements.

Ethical Leadership Principle

Guidelines that direct the behavior, practices, and decisions of leaders to be morally right and honorable in their role.

Teleological Ethical Theories

Ethical theories that determine the morality of an action based on its outcomes or goals; often contrasted with deontological theories, which focus on the morality of actions themselves.

Outcomes

The results or consequences of actions taken within a specific context or scenario.