Final answer:
Both Large and Small Stock Dividends decrease Retained Earnings. These financial decisions within a company are made by the management and the board of directors. Public companies follow regulations and shareholder interests, while private companies have more flexibility.
Step-by-step explanation:
Items that decrease Retained Earnings are distributions to shareholders, such as dividends. Both Large Stock Dividends and Small Stock Dividends can decrease Retained Earnings. The answer to the student's question is c. Both Large Stock Dividends and Small Stock Dividends.
In terms of who makes the decisions about when a firm will issue stock, or pay dividends, or re-invest profits, these decisions are typically made by a company's management and board of directors. In public companies, these decisions are closely related to shareholders' interests and regulatory requirements. Private companies, on the other hand, have more flexibility and can be influenced by the preferences of private owners or investors.