When a Corporation Calls in Its Outstanding Shares and Issues

question 27

Multiple Choice

When a corporation calls in its outstanding shares and issues more than one new share in exchange for each old share,this is a:

• A)Share split.
• B)Share dividend.
• C)Cash dividend.
• D)Reverse share split.
• E)Liquidating dividend

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Definitions:

Inventories

Stocks of goods and materials that businesses maintain to meet customer demand without delays.

Financial Assets

Assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and notes receivable.

Local Governments

Entities responsible for governing areas smaller than a state or province, often focusing on municipal or regional issues.

Federal Government

The national government of a federal country, which shares sovereignty with the subnational governments (states, provinces, etc.).