Final answer:
The distribution of additional shares can result from either stock splits or stock dividends. Stock splits divide existing shares and reduce the share price, while stock dividends distribute new shares to shareholders. Cash dividends are payouts in cash and do not provide additional shares. Options A and C are the correct answers.
Step-by-step explanation:
The question revolves around how shareholders can receive additional shares of a company. The actions that can result in the distribution of additional shares are a: stock splits and b: stock dividends. In the case of a stock split, the company increases the number of its outstanding shares by dividing each share, which lowers the share price and makes the stock more affordable, while shareholders retain a proportional amount of equity. A stock dividend, on the other hand, is paid to shareholders in the form of additional shares, thus increasing the number of shares owned.
Decision-making concerning stock issues, payment of dividends, or reinvestment of profits is done by the management of the company. With public companies, these decisions are typically made by the board of directors and require shareholder approval, reflecting the policies and strategic goals of the business. Private companies also make these decisions but may be less regulated and not require wider shareholder consensus due to their closed ownership.
The option c: cash dividend does not result in the distribution of additional shares; instead, it represents a payment made in cash to shareholders as a part of the company's profit allocation.
To summarize the correct options, both stock splits and stock dividends will result in the distribution of additional shares, while a cash dividend will not.