What is the difference between a stock split and a stock dividend?
What will be an ideal response?
A stock dividend entails the distribution of additional shares of stock in lieu of a cash payment. A stock split involves
exchanging more (or less in the case of a "reverse" split) shares of stock for the firm's outstanding shares. In both cases
the number of common shares outstanding changes, but the firm's investments and future earnings prospects do not.
In essence, the ownership pie is simply cut into more pieces (or fewer pieces in the case of a reverse split). The only
difference between a stock dividend and a stock split relates to their respective accounting treatments. Both represent a
proportionate distribution of additional shares to the current stockholders. However, for accounting purposes the stock
split has been defined as a stock dividend exceeding 25 percent. Thus, a stock dividend is conventionally defined as a
distribution of shares up to 25 percent of the number of shares currently outstanding.
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Fill in the blank(s) with the appropriate word(s).
The _____ method lists the individuals being rated from highest to lowest based on their performance levels and relative contributions.
A. ranking B. critical incident C. essay D. forced distribution
According to the Organisation for Economic Cooperation and Development, connections with people who are just like us, such as family, friends, and others who have a similar cultural background or ethnicity are called ________.
a. familial b. bonds c. bridges d. linkages
In the context of expectancy theory, the belief that performing a given action is associated with a particular outcome is called ________.
A. generalizing B. maintenance C. instrumentality D. valence