When a Corporation Declares a Stock Split, It Usually Does

question 109

Multiple Choice

When a corporation declares a stock split, it usually does so because

• A) the firm's retained earnings are excessive.
• B) there are too many shares of stock outstanding.
• C) investors sometimes require nontaxable returns.
• D) the stock price is too high.

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Definitions:

Career

A career is the set of experiences and activities that people engage in related to their job and livelihood over the course of their working life.

Disengagement Stage

The phase in a process, especially related to career or life stages, where an individual gradually lessens their involvement or participation.

Severity Error

A type of evaluation bias in performance appraisals where the assessor tends to rate all individuals either too harshly or too leniently.

Favoritism

The practice of giving unfair preferential treatment to one person or group at the expense of others.