Choose the Most Correct Statement Regarding a 2-For-1 Stock Split

question 39

Multiple Choice

Choose the most correct statement regarding a 2-for-1 stock split and a 100% stock dividend.

• A)Both cause the same reduction in retained earnings
• B)Only one affects contributed capital in excess of par on common shares
• C)Both cause a significant decrease in the common share account
• D)Neither affects par value
• E)Both double the number of shares outstanding

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Definitions:

Cognitive Component

The aspect of attitude that involves beliefs, thoughts, and knowledge about the subject.

Need For Achievement

A psychological trait that signifies the drive or motivation to accomplish tasks and attain goals.

Incentive Value

The perceived worth or desirability of a reward that motivates behavior or encourages action towards a goal.

Low Expectation

A belief that a future event or outcome will likely be of lesser quality or significance.