Reverse Stock Splits Have Which of Following Effects on the Number

question 44

Multiple Choice

Reverse stock splits have which of following effects on the number of shares outstanding?

• A)A reverse split reduces the increases of shares outstanding.
• B)A reverse split reduces the decreases of shares outstanding.
• C)A reverse split has no effect on the number shares outstanding.
• D)A reverse split reduces the number of shares outstanding in proportion to the debt outstanding.

---

Definitions:

Rental Charges

Costs associated with leasing or renting property or equipment.

Fixed Cost

Expenses that do not change in total regardless of the level of production or sales activity, such as rent, salaries, and insurance premiums.

Machine Hour

A machine hour is a unit of measurement representing the operation of machinery or equipment for one hour, used in calculating cost allocation and operational efficiency.

Total Variable Costs

The sum total of all costs that vary with the level of output or production volume, such as materials and labor directly involved in production.