Although Aaron Would Like to Go with His Friend to Hear

question 355

Multiple Choice

Although Aaron would like to go with his friend to hear a particular political candidate speak, he does not go because he knows his boss is supporting the other candidate.Thus, Aaron's decision not to go with his friend to the political rally is due to

• A) cognitive dissonance.
• B) a strong conviction.
• C) the expectation of how his boss would evaluate him.
• D) the effects of a long-standing habit.

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Definitions:

Stock Dividend

A distribution of additional shares of a company to its shareholders instead of paying cash dividends, often used to conserve cash while still rewarding investors.

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which often bears no relation to its market value.

Common Stock Dividends Distributable

A liability account that represents dividends declared by a company but not yet distributed to shareholders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, without changing the shareholders' equity.