If a Corporation Declares a 2-For-1 Stock Split, Which of the Following

question 165

Multiple Choice

If a corporation declares a 2-for-1 stock split, which of the following is true?

• A)A journal entry is required to show the effect on the stockholders' equity accounts.
• B)The stockholders will have a higher proportionate ownership share after the split.
• C)The par value will be reduced to half of the pre-split par value.
• D)The market price of the stock is expected to increase after the split.

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Definitions:

Racial Pride

The positive regard for one's racial or ethnic group, fostering a sense of identity and community.

Ethnic Heritage

The background, culture, traditions, and history shared by a group of people connected by common ancestry.

Identity Status

A framework describing the process of identity development with different stages: achievement, moratorium, foreclosure, and diffusion.

Marcia

Refers to James Marcia's theory on the stages of identity crisis and development, focusing on adolescents' exploration of identity.