The Primary Purpose of a Stock Split Is to

question 105

Multiple Choice

The primary purpose of a stock split is to

• A) increase paid-in capital
• B) reduce the market price of the stock per share
• C) increase the market price of the stock per share
• D) increase retained earnings

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Definitions:

Unused Capacity

The available but unutilized production or service capacity of a business, often reflecting inefficiencies or missed revenue opportunities.

Time-Driven

Pertaining to methods or systems where actions are scheduled or measured based on time.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing more accurate information on the real cost of specific product lines, services, or customers.

Number Of Employees

The total count of individuals employed by a company or organization, regardless of their employment status (full-time, part-time, etc.).