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:

Economic Underdevelopment

A condition in which a country or region suffers from low economic productivity, low living standards, and often high rates of poverty and unemployment.

Modernization Theorists

Scholars and thinkers who analyze the processes and impacts of modernization within societies, especially the transition from traditional to modern social, political, and economic systems.

Free Trade

A policy or practice of trading between countries, with minimal restrictions or tariffs, to encourage economic exchange.

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Refers to the overall quality of life based on financial stability, access to resources, and the ability to meet basic needs.