In a Reverse Stock Split

question 62

Multiple Choice

In a reverse stock split,

• A)the number of shares outstanding increases and owners' equity decreases.
• B)the number of shares outstanding decreases but owners' equity is unchanged.
• C)shareholders make a cash payment to the firm.
• D)the firm buys back existing shares of stock on the open market.
• E)the firm sells new shares of stock on the open market.

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Definitions:

Artifacts

Tangible or visible elements in an organization that represent its culture, such as language, attire, or symbols.

Kilmann-Saxton Culture-Gap

A model that identifies discrepancies between the existing and preferred organizational culture, often used to understand conflicts or challenges within companies.

Technical/Human Orientation

A theoretical perspective emphasizing the balance between technological skills and human social skills in organizational contexts.

Time Orientation

refers to the way individuals or cultures perceive and value time, influencing priorities, punctuality, and planning.