In a Stock Dividend,each Shareholder Who Owns the Stock Before

question 101

Multiple Choice

In a stock dividend,each shareholder who owns the stock before the ex-dividend date receives:

• A)additional shares of the firm.
• B)additional shares and stock.
• C)cash only.
• D)shares for partial cash payment.
• E)larger dividends.

---

Definitions:

Trade Surplus

A situation where a country exports more goods and services than it imports, leading to a positive balance of trade.

Exporting

Producing goods in one country and selling them in another.

Joint Venture

Formed when a firm entering a new market pools its resources with those of a local firm to form a new company in which ownership, control, and profits are shared.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to assess their purchasing power equivalency.