Which of the Following Statements Is Not True About a 2-For-1

question 151

Multiple Choice

Which of the following statements is not true about a 2-for-1 split?

• A) Par value per share is reduced to half of what it was before the split.
• B) Total contributed capital increases.
• C) The market price will probably decrease.
• D) A stockholder with ten shares before the split owns twenty shares after the split.

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Definitions:

Input Prices

Input prices refer to the costs associated with the purchase of the raw materials, labor, and other inputs required for the production of goods or services.

Marginal Cost Curve

A visual diagram indicating the variation in the expense of manufacturing an additional unit of a product as its production levels rise.

AVC

Stands for Average Variable Cost, which is the total variable cost per unit of output.

Short-Run Supply

The supply of goods that occurs when the sellers are only able to change some, but not all, conditions of production.