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

---

Definitions:

Profit Margin

The amount by which revenue from sales exceeds costs in a business, expressed as a percentage.

Sales-Oriented

A business approach focused primarily on generating sales regardless of customer needs or the longer-term company interests.

Objective

A specific, measurable, attainable, relevant, and time-bound goal that an individual or organization aims to achieve.

Price Increases

Price increases refer to the action of raising the cost at which goods or services are sold, often in response to factors like inflation, increased production costs, or higher demand.