Which of the Following Occurs When the Board of Directors

question 95

Multiple Choice

Which of the following occurs when the board of directors declares a 2-for-1 stock split on 20,000 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) Outstanding shares decrease to 10,000.
• D) Outstanding shares increase to 40,000.

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Definitions:

Transesterified

The process of exchanging the organic group R″ of an ester with the organic group R' of an alcohol.

Biodiesel

A renewable, biodegradable fuel made from vegetable oils or animal fats through a process called transesterification.

Trans Double Bond

A type of double bond where the substituents are on opposite sides, resulting in a more linear and less polar structure compared to cis double bonds.

Melting Point

The temperature at which a solid substance transitions to a liquid state, indicative of purity for pure substances.