Which of the Following Describes the Effect of a Share

question 5

Multiple Choice

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

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

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Definitions:

Signature

A person's name or mark written by themselves, used as a proof of intention and identity in a document.

Laborer's Pension Fund

A retirement fund specifically designed for the benefit of labor union members.

Union Dues

Fees paid by workers to labor unions to cover the cost of union representation and activities.

Agent's Signature

An agent's signature is the act of signing documents by a person (the agent) who has been authorized to act on behalf of another person or entity (the principal), indicating consent or agreement.