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:

Dichotomous Conclusions

Findings or results that present an either-or situation, typically dividing outcomes into two distinct categories without overlap or continuum.

Universal Truth

A fundamental principle or fact that is valid at all times and in all places.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis, experimentation, and conclusion.

Method of Authority

The acceptance of information or knowledge based on the credibility or expertise of the source, rather than on empirical evidence.