Which of the Following Statements Is True

question 57

Multiple Choice

Which of the following statements is true?

• A)Stock splits and stock dividends both reduce the market value of a share but only stock splits reduce the book value per share of issued shares.
• B)Stock splits reduce the book value of a share and stock dividends reduce the market value of a share.
• C)Stock splits and stock dividends both reduce the market value of a share but only stock splits reduce the retained earnings.
• D)Stock splits and stock dividends both reduce the market value of a share and the retained earnings.

---

Definitions:

Unconscionable

An action or a contract deemed to be so unfair or unjust towards a party that no reasonable or informed person would agree to it.

Business Law

A branch of law that deals with the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales.

Intoxicated

A condition of having physical or mental control significantly impaired by drugs or alcohol.

Defamation

A false statement or an action that harms the reputation or character of an individual, business, product, group, government, or nation.