The Owner of 100 Shares of Stock of a Corporation

question 74

Multiple Choice

The owner of 100 shares of stock of a corporation with 2,000 shares of stock outstanding has a 5% interest in the total stockholders' equity. If a 20% stock dividend is declared and distributed, that stockholder would own which of the following number of shares?

• A) 20
• B) 100
• C) 105
• D) 120

---

Definitions:

Long-Term Goals

Objectives or targets that are planned to be achieved over an extended period, typically over one year.

Strategic Planning

A methodical approach to imagining a preferred future, then converting this vision into general aims or targets and outlining a series of actions to reach these goals.

Operational Planning

The process of planning specific day-to-day activities and resources needed to achieve tactical objectives and support strategic goals of an organization.

Downward Flow

The transmission of information, commands, and policies from higher levels of an organization to lower levels.