Final answer:
The distribution of shares of James Corp. by Jesse Corp. to its shareholders is an example of a property dividend. A property dividend is when assets other than cash, in this case, shares of another corporation, are distributed to shareholders.
Step-by-step explanation:
When Jesse Corp. distributes shares of James Corp. to its shareholders as a dividend, this is an example of a property dividend. A property dividend involves distributions of assets other than cash to shareholders, which can include stocks of another corporation. Property dividends are often issued when a company wishes to reward shareholders but conserve cash, or when they redistribute assets that might be of more value to shareholders if directly owned.
A stock dividend would involve issuing additional shares of the company’s own stock to shareholders, a cash dividend is a direct payment of cash. Liquidating dividends occur when a corporation is dissolving and pays out its remaining assets to shareholders. The classification of dividends, such as property, stock, or cash, informs shareholders about the nature of the value they are receiving according to the corporation's distribution policy.