Which of the Following Occurs When the Board of Directors

question 98

Multiple Choice

Which of the following occurs when the board of directors declares a 3-for-1 stock split on 10,000 outstanding shares of $15 par common stock?

• A)The par value of the stock remains the same.
• B)The par value of the stock increases to $30 per share.
• C)The number of outstanding shares remains at 10,000.
• D)The number of outstanding shares increases to 30,000.

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Definitions:

Immediate Crisis

A sudden and urgent situation requiring quick action to prevent or minimize major damage or disaster.

Delegate

To assign responsibility or authority to another individual, typically to lighten one's own workload or to entrust tasks to more specialized personnel.

Skills and Confidence

The combination of abilities and self-assurance that enables an individual to perform tasks effectively and believe in their capacities.

Subordinate Jobs

Positions within an organization that fall below the managerial or leadership levels, typically involving more direct task execution under supervision.