Which of the Following Occurs When the Board of Directors

question 132

Multiple Choice

Which of the following occurs when the board of directors declares a 3-for-1 stock split on 20,000 outstanding shares of $25 par common stock?

• A) The par value of the stock remains the same.
• B) The par value of the stock increases to $50 per share.
• C) The number of outstanding shares remains at 20,000.
• D) The number of outstanding shares increases to 60,000.

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Definitions:

Plasma

The liquid component of blood, in which blood cells are suspended.

Serum

The component of blood that remains after clotting has removed the blood cells and clotting proteins, containing antibodies and other proteins.

Formed Elements

Cells (i.e., red and white blood cells) and cell fragments (i.e., platelets) of blood.

Leukocytes

White blood cells that are part of the body's immune system, involved in protecting the body against both infectious disease and foreign invaders.