How Will Stockholders' Equity and Net Income Be Affected by the Issuance

question 48

Multiple Choice

How will stockholders' equity and net income be affected by the issuance of stock warrants to employees under a noncompensatory stock option plan? $\begin{array}{lll}& \text {Stockholders Equity}& \text {Net Income}\\\text { I. } & \text { no effect } & \text { no effect } \\\text { II. } & \text { no effect } & \text { decreased } \\\text { III. } & \text { decreased } & \text { decreased }\\\text { IV. } & \text { decreased } & \text { no effect } \end{array}$

• A)I
• B)II
• C)III
• D)IV

---

Definitions:

Personal Identification

The process by which an individual aligns or associates themselves with certain groups, ideas, or roles as part of their self-concept.

Extraordinary

Something that is very unusual or remarkable, often exceeding the normal or expected.

Exceptional Expertise

A high level of specialized knowledge or skill in a particular domain, significantly surpassing the ordinary.

Executives

Individuals who hold senior management positions within an organization, responsible for decision-making and strategic direction.