If You Own 200,000 Shares of Stock in a Company

question 127

Multiple Choice

If you own 200,000 shares of stock in a company with 8 million shares outstanding and the company issues an additional 2 million shares to its employees through a stock purchase plan,your ownership percentage:

• A)remains the same because the company now has more assets.
• B)falls from 2.5% to 2%.
• C)remains the same because the company now has fewer liabilities.
• D)increases because the company now has more stock outstanding.

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Definitions:

Operant Conditioning

A method of instruction where the potency of a conduct is adjusted by means of incentives or disciplinary measures.

Negative Reinforcement

A behavioral strategy in which the removal of an undesirable or negative outcome follows a desired behavior, thereby increasing the likelihood of that behavior being repeated.

Job Rotation

Job rotation is a human resource management strategy where employees are moved between different jobs or tasks to gain a variety of skills and experiences and to prevent job fatigue and dissatisfaction.

Task Variety

Refers to the diversity of activities and skills involved in a job, aimed at reducing monotony and increasing employee satisfaction.