A Corporation Began Operations on October 1, 2019, with 3,000

question 187

Multiple Choice

A corporation began operations on October 1, 2019, with 3,000 shares of $2 par common stock authorized. The company issued common stock on several occasions during 2019 and 2020. On December 31, 2020, the company repurchased 1,000 shares of its outstanding shares and then reissued 500 of these shares on March 1, 2021. On June 1, 2021, the company's board of directors declared a 2-for-1 stock split. As a result of this stock split, which of the following is true?

• A)Assets decreased.
• B)The number of shares issued decreased.
• C)Total liabilities decreased.
• D)Total stockholders' equity remained the same.

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Definitions:

Global Leadership

Leadership that transcends national borders, encompassing the ability to influence individuals, groups, and organizations worldwide.

Human Capital

The knowledge, skills, and abilities (KSAs) embodied in an organization’s employees.

Managing Uncertainty

The process of minimizing the impact of unknowns in decision-making and planning.

Global Leaders

Individuals who possess the skills and knowledge to lead organizations or teams across diverse cultural and geographical boundaries.