A Stock Dividend Is Often Used When the Company Has

question 47

True/False

A stock dividend is often used when the company has high cash levels, but feels that a stock dividend would be more beneficial to the investors.

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Definitions:

Business Organization

An entity formed for the purpose of carrying out commercial enterprise. Such organizations come in different forms including partnerships, corporations, and sole proprietorships.

Good Cause

A legally sufficient reason or justification for certain actions, decisions, or deviations from standard norms.

Terminate

To bring something to an end or conclusion, often referring to the cessation of contractual agreements or employment.

Specified Sales Quotas

Set amounts of sales that a salesperson or team is aimed to achieve within a certain time frame.