Encouraged by the strong financial quarter, the board of directors approved the stock dividend.

 Identify the participial phrase(s) in the following sentence.

Encouraged by the strong financial quarter, the board of directors approved the stock dividend.
Multiple choice question.

the board of directors approved the stock dividend
Reason:

Incorrect. This is an independent clause. It has a subject (board of directors) and a verb (approved), and it can stand on its own as a sentence.

Encouraged by the strong financial quarter
Reason:

Correct. This is a participial phrase because it begins with the past participle Encouraged.

stock dividend
Reason: Incorrect. This is a two-word noun.
Correct Answer

Encouraged by the strong financial quarter