All of the Following Statements Regarding Share Dividends Are Except

question 146

Multiple Choice

All of the following statements regarding share dividends are except:

• A) Directors can use share dividends to keep the market price of the shares affordable.
• B) Share dividends provide evidence of management's confidence that the company is doing well.
• C) Share dividends do not reduce assets or equity.
• D) Share dividends decrease the number of shares outstanding.
• E) Share dividends transfer a portion of equity from retained earnings to contributed capital.

---

Definitions:

Simulation Game

A video game or computer game that replicates real-life activities, systems, or environments for training, research, or entertainment purposes.

Competitive Choice

The concept involves selecting alternatives based on a competitive framework where the best option is chosen through comparison and evaluation against others.

Mixed-motive

Refers to situations or games in which participants have both shared and conflicting interests with each other.

Free Riding

The behavior of individuals who benefit from resources, goods, or services without contributing to the cost or effort involved in providing them.