When a Dividend Is Declared and Paid in Stock

question 4

Multiple Choice

When a dividend is declared and paid in stock,

• A) total stockholders' equity does not change.
• B) total stockholders' equity decreases.
• C) the current ratio increases.
• D) the amount of working capital decreases.

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Definitions:

Strike Activity

Refers to the actions taken by workers, typically organized by labor unions, to cease work in order to protest for better wages, working conditions, or other labor-related issues.

Permanent Strike Replacements

Workers hired to permanently take the positions of striking workers, a tactic sometimes used by employers during labor disputes.

Lockout

An action taken by employers to prevent employees from entering the workplace, typically during a labor dispute to pressurize the labor side.

Secondary Boycott

A form of protest where the union encourages both its members and the general public not to buy products or services from a company that is involved in a dispute.