What Is the Term for a Division of Stock That

question 37

Multiple Choice

What is the term for a division of stock that gives stockholders a greater number of shares but does not change each individual's proportionate share of ownership?

• A) stock dividend
• B) stock split
• C) stock yield
• D) stock warrant
• E) stock exchange

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Unit Contribution Margin

The difference between the selling price of a unit and its variable costs, indicating how much each unit contributes to covering fixed costs and generating profit.

Sales Volume

The total number of units sold within a specific period, often used as an indicator of business performance.

Variable Expense

Costs that change in proportion to the level of production or sales activity.