Consumer Price Index is
A. a weighted aggregate price index where the weight for each item is its current-period quantity.
B. a weighted aggregate price index where the weight for each item is its last-period quantity.
C. an index that is designed to measure changes in quantities over time.
D. an index that is designed to measure changes in production levels over time.
Answer: A
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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.
A consolidation:
A) has precisely the same result as a merger. B) is the most typical form of business combination used today. C) is always illegal (in contrast to mergers, which are legal under state law). D) requires the assent of the board of directors and shareholders of each corporation.
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