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

question 49

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

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Definitions:

Large Batch Sizes

This term refers to the production of goods in large quantities at a time, often to achieve economies of scale but possibly increasing holding costs.

Smaller Inventories

Holding reduced levels of stocks or goods to lower storage costs and minimize risk of obsolescence.

Large Batch Sizes

The production process strategy that involves manufacturing goods in large quantities to achieve economies of scale but may increase inventory holding costs.

Lead Time

Lead time refers to the period between the initiation and completion of a process, such as the time taken from placing an order to delivery or the duration of manufacturing a product.