When a Corporation Declares a Stock Split, It Usually Does

question 71

Multiple Choice

When a corporation declares a stock split, it usually does so because

• A) the firm's retained earnings are excessive.
• B) there are too many shares of stock outstanding.
• C) investors sometimes require nontaxable returns.
• D) it wants to make its stock more affordable to average investors.

---

Definitions:

Marketing Objectives

The specific goals set by a company as part of its marketing plan, which may include increasing brand awareness, sales, market share, or customer loyalty.

Strategy Canvas

A strategic management tool used for comparing current market positions of companies and to visualize strategies in uncontested market spaces.

Four Actions Framework

A strategic model used in business to create new value for customers and differentiate from competitors by systematically considering which factors to eliminate, reduce, raise, and create.

Strategic Focus

A business approach that involves prioritizing and concentrating efforts and resources on the most critical areas that will drive success.