If You Own 200,000 Shares of Stock in a Company

question 115

Multiple Choice

If you own 200,000 shares of stock in a company with 8 million shares outstanding and the company issues an additional 2 million shares to its employees through stock options,your ownership percentage:

• A)remains the same because the company now has more assets.
• B)falls from 2.5% to 2%.
• C)remains the same because the company now has fewer liabilities.
• D)increases because the company now has more stock outstanding.

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Definitions:

Resource Utilization

The efficient and effective use of resources, such as capital, materials, and labor, to achieve maximum output.

Resource Utilization

The efficient and effective deployment and use of resources, such as capital, materials, and labor, in the production of goods or services.

Work Performance

The assessment of an employee's effectiveness in fulfilling job duties and contributing to organizational goals.

Resource Cost

The expense associated with the acquisition, maintenance, and use of resources such as materials, time, and labor.