Coercive power refers to an ability to convince a person to act in favor of your proposal.

Gibbs Corporation owned 20,000 shares of Oliver Corporation's $5 par value common stock. These shares were purchased in 2009 for $180,000. On September 15, 2013, Gibbs declared a property dividend of one share of Oliver for every ten shares of Gibbs held by a stockholder. On that date, when the market price of Oliver was $21 per share, there were 180,000 shares of Gibbs outstanding. What NET reduction in retained earnings would result from this property dividend?

a. 162,000 b. 378,000 c. 108,000 d. 216,000

Fees of load funds that are used to cover the costs of trading in securities are called 12b-1 fees.

a. true b. false