Answer the following statements true (T) or false (F)
1. Depending on its size, a stock dividend may cause the company's market price to rise because of the
increased supply of stock.
2. Stock dividends are distributed to stockholders in proportion to the number of shares that stockholders
already own.
3. The declaration of a stock dividend creates a liability for the corporation.
4. Small stock dividends are accounted for at the stock's par value.
5. A stock split decreases par value per share, whereas stock dividends do not affect par value per share.
1. FALSE - Explanation: Depending on its size, a stock dividend may cause the company's market price to fall because of the increased supply of stock.
2. TRUE
3. FALSE
4. FALSE - Explanation: Small stock dividends are accounted for at the stock's market value.
5. TRUE
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a. Referent others b. Authorities c. Inequality figures d. Perceived inequity
______ is kindness toward others, desire to promote the happiness, and prosperity of employees.
A. Benevolence B. Humility C. Integrity D. Compassion
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a. True b. False Indicate whether the statement is true or false