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:

Reduced Accountability

A situation where there is less reasonability and answerability for actions or decisions, potentially leading to lower performance standards.

Functional Structure

An organizational format that groups employees by their similar specialties, roles, or tasks.

Similar Customers

Consumers who share common characteristics, needs, or purchase behaviors.

Stable Environments

Conditions in which the external business context remains relatively unchanged, allowing for predictable operational planning.