Which of These Is Not a Reason for Declaring a Share

question 54

Multiple Choice

Which of these is not a reason for declaring a share dividend?

• A) To conserve the company's cash instead of declaring a cash dividend.
• B) To decrease the market price of the shares.
• C) To raise extra capital for the company.
• D) To give shareholders extra shares.

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Definitions:

Black Smokers

Hydrothermal vents on the seafloor in which hot water from within the rock jets out into cold seawater and forms a cloud of minerals, especially those rich in sulfur.

Sulfide Minerals

Minerals composed of sulfide ions and one or more metals; important as ore minerals and for their chemical properties.

Fast-Spreading Ridge

A geological feature where tectonic plates are diverging at a rapid rate, leading to significant volcanic activity and the formation of new oceanic crust.

Hydrothermal Vents

Hydrothermal vents are openings in the sea floor from which heated mineral-rich water flows, often located near volcanically active places.