Which of the Following Can Be Reasons for a Company

question 46

Multiple Choice

Which of the following can be reasons for a company to declare a share dividend (bonus issue) ?
I. To reduce the market price of their shares.
II. To capitalise the retained earnings of the company.
III. To conserve cash.
IV. To increase the number of shareholders.

• A) I and II only.
• B) I, II, III and IV.
• C) I, III and IV only.
• D) I, II, and III only.

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Definitions:

Odd Pricing

A pricing strategy where items are priced slightly below a round number (e.g., $199.99 instead of $200), believing it psychologically encourages more sales.

Yield Management

A strategy for maximizing revenue even when a firm has a fixed amount of something (goods, services, or capacity).

Price Bundling

A marketing strategy that involves selling multiple products or services together at a single price point.

Sanctioned Channels

Officially approved or recognized pathways through which information or goods are distributed.