Which of the Following Occurs When the Board of Directors

question 104

Multiple Choice

Which of the following occurs when the board of directors declares a 3-for-1 stock split on 17,000 outstanding shares of $24 par common stock?

• A)The par value of the stock remains the same.
• B)The par value of the stock increases to $48 per share.
• C)The number of outstanding shares remains at 17,000.
• D)The number of outstanding shares increases to 51,000.

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Definitions:

Threshold

The level, point, or value above which something is true or will happen and below which it is not or will not.

High-Productivity People

Individuals who consistently generate significant outputs or results in relation to the time and resources used, often contributing to economic growth.

Educational Level

A measure of the highest degree of schooling or training achieved by an individual, often impacting employment opportunities and earnings potential.

Threshold

The point at which a particular effect, reaction, or change occurs, often marking the boundary or limit for certain actions.