An Increase in the Number of Authorized, Issued and Outstanding

question 28

Multiple Choice

An increase in the number of authorized, issued and outstanding shares of stock along with a proportional reduction in the stock's par value is a:

• A) deficit.
• B) stock dividend.
• C) stock split.
• D) cash dividend.

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Definitions:

Expected Monetary Value

A calculation used in decision-making to determine the average outcome when the future includes scenarios that may or may not happen.

Analytic Decision Making

The process of making choices by systematically analyzing information, evaluating alternatives, and basing decisions on rational evidence.

Maximin Criterion

A decision rule used in statistics, economics, and game theory that selects the action maximizing the minimum payoff possible from available choices.

Maximax Criterion

A decision rule used in scenarios of uncertainty to select the option with the maximum possible payoff, focusing on the most optimistic outcome.