One Characteristic of a Stock Split Is That It Will

question 163

Multiple Choice

One characteristic of a stock split is that it will

• A) reduce retained earnings.
• B) increase total share capital.
• C) increase the total assets.
• D) increase the number of shares.

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Definitions:

Basic Decisions

Fundamental choices or determinations made to guide actions, policies, or strategies, often in businesses or personal planning.

Economies

The large set of inter-related production, consumption, and exchange activities that aid in determining how scarce resources are allocated.

Goods Produced

The total quantity of physical items that are manufactured or processed by a company or economy within a specific time frame.

Law of Comparative Advantage

A principle that states that individuals, firms, regions, or nations can gain by specializing in the production of goods that they produce cheaply (at a low opportunity cost) and exchanging them for goods they cannot produce cheaply (at a high opportunity cost).