A Corporation's Distribution of Additional Shares of Its Own Stock

question 106

Multiple Choice

A corporation's distribution of additional shares of its own stock to its stockholders without the receipt of any payment in return is called a:

• A)Stock dividend.
• B)Stock subscription.
• C)Premium on stock.
• D)Discount on stock.
• E)Treasury stock.

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Definitions:

Percentage

A way of expressing a number as a fraction of 100, used to compare proportions.

Land

In addition to the part of the earth’s surface not covered by water, this term refers to any and all natural resources (“free gifts of nature”) that are used to produce goods and services. Thus, it includes the oceans, sunshine, coal deposits, forests, the electromagnetic spectrum, and fisheries. Note that land is one of the four economic resources.

User Costs

Expenses incurred by consumers for the use of a good, service, or asset, including maintenance, repair, and operational costs.

Total Cost Line

A graphical representation showing the total cost of producing varying quantities of output.