Split-Gram, Inc

question 55

Multiple Choice

Split-Gram, Inc. has announced a 4-to-1 stock split. If the company currently has 1 million shares outstanding, how many outstanding shares will it have after the split?

• A) 4 million
• B) 3 million
• C) 2 million
• D) 1 million

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Definitions:

Direct Materials

Raw materials that are directly incorporated into and can be directly traced back to a finished product in the manufacturing process.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Inbound Transportation Cost

Expenses incurred in bringing raw materials or products from suppliers to a company's premises.

Sourcing

The process of identifying, evaluating, and selecting suppliers for goods or services required by a business.