Which of the Following Statements Is False

question 62

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:

Hybrid Model

A business or operational model that combines elements from different approaches or systems, such as remote and in-person work environments.

Social Entrepreneurship

A business model that focuses on solving social problems or addressing needs through innovative solutions.

Economic Goals

Objectives that society or individuals aim to achieve to improve economic welfare, such as growth, full employment, stability, and equity.

Stakeholders

Individuals or groups impacted by or having an interest in the operations and outcomes of a business or project.