Which of the Following Statements Is FALSE

question 69

Multiple Choice

Which of the following statements is FALSE?

• A)With a stock dividend,a firm does not pay out any cash to shareholders.As a result,the total market value of the firm's assets and liabilities,and therefore of its equity,is unchanged.
• B)If the price of the stock falls too low,a company can engage in a reverse split and reduce the number of shares outstanding.
• C)Stock dividends of 50% or higher are generally referred to as stock splits.
• D)Rather than pay a dividend using cash or shares of its own stock,a firm can also distribute shares of a subsidiary in a transaction referred to as a off-shoot.

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Definitions:

Inspirational Appeals

A strategy employed to motivate individuals by appealing to their emotions, aspirations, or values in order to inspire action.

Ingratiation

A psychological technique used to influence others through flattery or other forms of manipulation to make oneself more likable or acceptable.

Personal Appeals

Personal appeals refer to requests or arguments made on the basis of personal relationships or loyalties, often used to influence decision-making or persuade others.

Exchange

In social sciences, refers to the act of giving one thing and receiving another between two parties, often in the context of goods, services, information, or social ties.