Which of the Following Situations Is a Potential Source of Cash

question 36

Multiple Choice

Which of the following situations is a potential source of cash flows for a shareholder of a certain stock?
I.The investor may be able to sell the shares at a future date.
II.The firm in which the shares are held might pay out cash to shareholders in the form of dividends.
III.The firm in which the shares are held might increase the value of its shares by reducing the total number of shares outstanding.

• A)I only
• B)II only
• C)I and II
• D)II and III

---

Definitions:

Weights

Measures of the heaviness of objects or individuals, often used in statistical analysis to consider the importance or influence of different observations.

Enslaved Africans

Individuals from Africa who were forcefully transported to the Americas and other places to work as slaves from the 16th to the 19th century.

North America

A continent in the Northern Hemisphere and Western Hemisphere, including countries such as Canada, the United States, and Mexico.

Tradesman

A worker skilled in a particular craft or trade, often involving manual labor and specialized knowledge, such as carpentry, plumbing, or electrical work.