A 2-For-1 Share Split Will

question 40

Multiple Choice

A 2-for-1 share split will:

• A) Increase the total par value of the share and increase the number of shares outstanding.
• B) Decrease the total par value of the share and increase the number of shares outstanding.
• C) Not change the total par value of the share and increase the number of shares outstanding.
• D) Increase total shareholders' equity.

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Definitions:

Fundamental Attribution Error

A cognitive bias that causes people to overestimate the influence of personality or dispositional factors on an individual's behavior while underestimating the influence of situational factors.

Dispositional Causes

Factors related to an individual's personality or internal characteristics that are thought to cause their behavior.

Situational Causes

Factors or circumstances outside the individual that are attributed to affecting behavior.

Individualistic Culture

A culture that emphasizes personal independence and the value of individual self-expression over collective goals.