A Corporation That Has an Automatic Reinvestment Plan

question 52

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 re-invest the dividend in additional shares.

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Definitions:

Heart Disease

A range of conditions affecting the heart's structure and function, leading to significant health problems such as heart attack, stroke, and chronic heart failure.

Unbalanced Relationship

A relationship in which one party has more power, control, or emotional investment than the other, leading to inequity.

Negative

Pertaining to a lack or absence of something, especially in terms of force, charge, or emotions in various contexts.

Cognitive Consistency Theories

Theories in psychology that suggest individuals are motivated to maintain consistency among their cognitions (beliefs, attitudes, and perceptions).