Which of the Following Is a Reason Why a Company

question 139

Multiple Choice

Which of the following is a reason why a company would do a stock split?

• A) To defend against a hostile takeover
• B) To generate additional sales revenues
• C) To reduce the market price at which the stock is trading
• D) To provide the shareholders with something of value, when the company cannot afford a cash dividend

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Definitions:

Brainstorming

Involves generating ideas through “free-wheeling” and without criticism.

Freewheeling

Freewheeling is engaging in spontaneous, unstructured, and unrestricted behavior or thought, often allowing creativity and ideas to flow without limitation.

Majority Rule

A decision-making process where the option that receives more than half of the votes wins.

Co-acting Team Pattern

A team configuration where members work independently towards a common goal but their tasks do not require constant interaction among them.