What Is a "Stock Split

question 52

Multiple Choice

What is a "stock split"?

• A)It is an increase in the number of shares issued for which book value consideration is received from investors.
• B)It is an increase in the number of shares issued for which no consideration is received from investors.
• C)It is an increase in the number of shares issued for which par value consideration is received from investors.
• D)It is an increase in the number of shares issued for which market value consideration is received from investors.

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Definitions:

Space Rental

The act of obtaining the use of a physical location or property for a specified period of time in exchange for payment.

Raw Material Cost

The expenditure incurred for the raw ingredients or basic materials that are converted through manufacturing processes into goods or services.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Labor

The body of persons engaged in work or employment, especially manual or physical work.