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.

---

Definitions:

Label

A name, word, or phrase assigned to someone or something for the purpose of classification or identification.

Required To Offer

A condition or obligation to present or provide something as stipulated by law, contract, or circumstances.

Neutral Information

Unbiased facts or data presented without any agenda, allowing the recipient to formulate their own opinions or conclusions.

Direct Approach

A straightforward method of communication or problem-solving that involves addressing an issue or topic head-on.