Which of the Following Statements About Large Stock Dividends Is

question 36

Multiple Choice

Which of the following statements about large stock dividends is true?

• A)If the market price of the stock before a 50% stock dividend is $30,the market price after the stock dividend will be $45.
• B)If the market price of the stock before a 50% stock dividend is $30,the market price after the stock dividend will be $60.
• C)A stockholder who owned 50 shares of stock before the 50% stock dividend,will own 100 shares of stock after the stock dividend.
• D)With a 50% stock dividend,Retained Earnings is reduced by the par value of new shares of stock issued.
• E)With a 50% stock dividend,Retained Earnings is reduced by the market value of new shares of stock issued.

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Definitions:

Time Study

A work measurement technique for recording the times of performing a certain specific job or its elements carried out under specified conditions.

Scientific Management

An early 20th-century management theory proposing the optimization of labor productivity through scientific studies of work methods and processes.

Frederick Taylor

An American mechanical engineer who sought to improve industrial efficiency and is considered the father of scientific management.

Bureaucratic Organizations

Organizations characterized by strict rules, hierarchical relationships, and a focus on procedure and protocol over flexibility and adaptability.