When a Corporation Completes a 3-For-1 Stock Split

question 93

Multiple Choice

When a corporation completes a 3-for-1 stock split

• A) the ownership interest of current stockholders is decreased
• B) the market price per share of the stock is decreased
• C) the par value per share is decreased
• D) the market price per share of the stock and the par value per share is decreased

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Definitions:

Commercial Impracticability

A legal defense that excuses the performance of a contract due to unforeseen and uncontrollable circumstances that make fulfillment excessively burdensome or impossible.

Financially Unsound Contract

A contract deemed as high-risk due to the financial instability or inability of one or more parties to fulfill their obligations.

Relieved from Performance

A legal condition where a party is released from fulfilling their obligations under a contract due to unforeseen circumstances.

Perfect Tender Rule

The perfect tender rule is a principle in sales law that allows a buyer to reject goods delivered by a seller if they do not meet all contract specifications.