Which of the Following Describes the Clientele Effect Concept of Dividend

question 71

Multiple Choice

Which of the following describes the clientele effect concept of dividend policy?

• A)The clientele effect looks at investor preferences for dividends compared to share repurchase programs.
• B)The clientele effect defines the relationship between the shareholder and a sharebroker.
• C)The clientele effect focuses entirely on the stability of dividends.
• D)Modern corporations do not consider shareholders to be 'clients'.

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Definitions:

Rotter's Social Learning Theory

A psychological theory suggesting that the expectations of receiving a reward after observing others' behaviors influence one's own behavior.

Reinforcement

A principle in behavioral psychology where a behavior is strengthened or weakened, depending on the consequences of that behavior.

Q-sort Procedure

A method used to study personality traits, attitudes, or beliefs by sorting statements into categories that reflect how applicable they are to oneself or another.