A Feature Common to Both Stock Splits and Stock Dividends

question 10

Multiple Choice

A feature common to both stock splits and stock dividends is

• A) A reduction in total capital of a corporation
• B) A transfer from earned capital to paid-in capital
• C) A reduction in book value per share
• D) Inclusion in conventional statement of source and application of funds

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Definitions:

Non Est Factum

A legal defense claiming a contract is invalid because it was misunderstood or misrepresented at the time of signing, not reflective of the signer's intent.

Unconscionability

A condition in contract law where an agreement is deemed unjust or extremely one-sided in favor of the party with superior bargaining power.

Duress

A condition where a person performs an act as a result of violence, threat, or other pressures against them, undermining their free will.

Privity of Contract

A legal doctrine stating that only parties involved in a contract are entitled to enforce it or be sued under it.