The Result of Share Splits and Share Consolidations on Share

question 22

Multiple Choice

The result of share splits and share consolidations on share capital is:

• A)the total amounts of paid-up share capital and uncalled share capital (if any) are unchanged.However the number of shares is changed and the amount (if any) uncalled on each share changes.
• B)the ratio of amount paid-up to the amount uncalled on the shares is unchanged but the number of shares changes.
• C)the total paid-up share capital increases in the case of a share split and decreases in the case of a share consolidation.
• D)the amount paid-up per share and the amount uncalled per share change in proportion, but the equivalent issue price per share does not.

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Definitions:

Time Study

A work measurement technique for recording the times of performing a task to establish a standard time for the activity by direct observation and timing.

Labour Standard

Labour standard represents the amount of time required to perform a job or part of a job at a defined level of performance, often used in planning and evaluating labor efficiency.

Work Sampling

A statistical technique used to estimate how much time workers spend on various activities during their workday.

Disadvantages

Negative or less favorable aspects of a situation, plan, or product that may act as hurdles or drawbacks.