In general, which of the following statements concerning treasury stock is true?

A. A corporation may not reacquire its own stock unless specifically authorized by its articles of incorporation.
B. On issuance of new stock, a corporation has preemptive rights with regard to its treasury stock.
C. Treasury stock may be distributed as a stock dividend.
D. A corporation is entitled to receive cash dividends on its treasury stock.

Answer: C. Treasury stock may be distributed as a stock dividend.