Rienstra Electronics Has Just Declared a 2 for 1 Stock

question 89

Multiple Choice

Rienstra Electronics has just declared a 2 for 1 stock split. The current price of the stock is above the par value. Which of the following account balances will be affected by the stock split?

• A)Common stock
• B)Paid in Excess
• C)Retained Earnings
• D)All of these account balances will be affected.
• E)None of these account balances will be affected.

---

Definitions:

Management Structure

The hierarchical arrangement of lines of authority, communications, rights, and duties within an organization.

Franchise

A business model that allows individuals to own and operate their branch or location of an existing larger brand or business.

Disadvantages

The negative or less favorable aspects of a situation, decision, or business strategy.

Franchisor

A business entity that allows individuals or other businesses to operate a location or outlets under its brand name, providing a business model, brand, and support in exchange for fees and adherence to its operational guidelines.