A 2-For-1 Stock Split Is Declared

question 110

Multiple Choice

A 2-for-1 stock split is declared.In this case which of following statements is true?

• A) The cash account declines.
• B) The common stock account rises.
• C) The retained earnings fall.
• D) The number of common shares increases.

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Definitions:

Low Buyer Power

A market condition where buyers have limited influence over prices or terms due to high supplier concentration or the lack of alternatives.

Low Supplier Power

Refers to a market condition where suppliers have little control over the pricing and terms of sales, giving buyers greater bargaining power.

Strategy

A plan of action designed to achieve a long-term or overall aim, often involving tactical and operational decision-making.

Resources and Capabilities

The tangible and intangible assets that a firm utilizes to develop, manufacture, and deliver products or services to its customers.