Assuming the Issuing Company Has Only One Class of Stock

question 21

Multiple Choice

Assuming the issuing company has only one class of stock, a transfer from retained earnings to capital stock equal to the market value of the shares issued is ordinarily a characteristic of

• A) Either a stock dividend or a stock split
• B) Neither a stock dividend nor a stock split
• C) A stock split but not a stock dividend
• D) A stock dividend but not a stock split

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Definitions:

Performance Levels

The degree to which an individual, group, or system accomplishes its goals or objectives effectively.

Scientific Management

A theory of management that analyzes and synthesizes workflows, aiming to improve economic efficiency, especially labor productivity.

Maximum Efficiency

The highest level of productivity and effectiveness that can be achieved with the least amount of waste, effort, or expense.

Economic Benefits

Financial advantages or gains obtained from a particular activity, investment, or decision.