Which of the Following Describes the Effect of a Stock

question 13

Multiple Choice

Which of the following describes the effect of a stock dividend?

• A) A stock dividend immediately increases the market price of a share of stock.
• B) A stock dividend immediately decreases the paid-in capital account.
• C) A stock dividend immediately increases the number of shares outstanding.
• D) A stock dividend indicates that the company must be short on cash.

---

Definitions:

Locale

A place or setting of an event, story, or situational context, often significant to its narrative or functionality.

Venue Questions

Legal issues regarding the most appropriate location or jurisdiction where a trial should be held.

Forum Selection Clauses

Provisions in a contract that designate the specific court or jurisdiction where disputes will be resolved.

Service of Process

The procedure by which a party to a lawsuit gives an appropriate notice of initial legal action to another party, court, or administrative body in an effort to exercise jurisdiction over that person so as to enable that person to respond to the proceeding before the court, body, or other tribunal.