Before the Announcement of a Three-For-One Stock Split, the Selling

question 145

Multiple Choice

Before the announcement of a three-for-one stock split, the selling price for a share of stock in Fossil Oil Refineries was $150 per share. Immediately after the stock split, the probable price per share is

• A) $450.
• B) $ 50.
• C) $350.
• D) $150.

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Definitions:

RUPA

The Revised Uniform Partnership Act, which governs the operation of partnerships in the United States.

Limited Liability

A legal principle that shields an investor's personal assets from being used to satisfy the debts and liabilities of the business, typically applicable in corporations and limited liability companies.

Partnership Business

A partnership business is a type of business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.

Partnership Capital

Refers to the total resources contributed by partners to a partnership for the purpose of starting or maintaining the business operations.