A Stock Split Will

question 21

Multiple Choice

A stock split will

• A)have no effect on retained earnings.
• B)increase total share capital.
• C)increase total assets.
• D)decrease the number of shares issued.

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Definitions:

Loophole

An ambiguity or inadequacy in the law or a set of rules that allows one to circumvent or avoid its intent.

Common Law

A legal system based on custom, court rulings, and past incidents rather than written laws.

Case Law

Law established by previous court decisions and based on precedent rather than statutes or regulations; integral to common law legal systems.

Employment-at-will

A legal doctrine that means an employer has the right to terminate an employee at any time for any reason, except an illegal one, and the employee is likewise free to quit, strike, or otherwise cease work.