Which of the Following Will Happen to a Shareholder's Percentage

question 35

Multiple Choice

Which of the following will happen to a shareholder's percentage ownership in the share of a company when the company declares a share dividend?

• A)The shareholder's percentage ownership decreases.
• B)The shareholder's percentage ownership stays the same.
• C)The shareholder's percentage ownership increases.
• D)The shareholder's percentage ownership can increase or decrease.

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Definitions:

Checks

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a named party.

Cost-Benefit

An analysis or approach that compares the costs of an action to its benefits to determine its feasibility or value.

Internal Controls

Procedures and mechanisms put in place by a company to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.

Benefits

Forms of non-wage compensation provided to employees in addition to their normal wages or salaries, like health insurance, pensions, and holidays.