Which of the Following Is a Reason for a Company

question 83

Multiple Choice

Which of the following is a reason for a company to announce a stock split?

• A)to defend against a hostile takeover
• B)to double the par value of the share
• 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

Identify and disregard sunk costs in capital investment analysis.

Understand the impact of periods of inflation on capital investments.

Recognize the importance of accounting for the time value of money in investment decisions.

Grasp the principles of capital rationing and its application in prioritizing investment projects.

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Definitions:

Perfectionistic

Characterized by a person's striving for flawlessness and setting excessively high performance standards, accompanied by overly critical self-evaluations and concerns regarding others' evaluations.

Personality Disorders

A group of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating markedly from those accepted by the individual’s culture.

Behaviour

The way in which an individual acts in response to a particular situation or stimulus.

Positive Or Negative Symptoms

Terms used in describing symptoms of psychological disorders, where positive refers to excesses or distortions of normal functions, and negative to deficits of normal functions.