Choose the Most Correct Statement Regarding a 2-For-1 Stock Split

question 108

Multiple Choice

Choose the most correct statement regarding a 2-for-1 stock split and a 100% stock dividend.

• A) Neither affects par value
• B) Both cause the same reduction in retained earnings
• C) Both double the number of shares outstanding
• D) Both cause a significant decrease in the common share account
• E) Only one affects contributed capital in excess of par on common shares

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Definitions:

Recruiters

Professionals who seek out, interview, and hire individuals to fill job vacancies within an organization.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something.

Employee Referrals

A recruitment method where existing employees recommend potential candidates for vacancies within the organization, often incentivized by referral programs.

Employee Turnover

The rate at which employees leave a company and are replaced by new hires over a given period, often viewed as an indicator of workplace satisfaction and stability.