The decision to issue additional shares of stock is an example of which one of the following?
A)working capital management
B)net working capital decision
C)capital budgeting
D)controller's duties
E)capital structure decision

Question

Quizplus · Accepted Answer

The decision to issue additional shares of stock relates to the capital structure of the company as it affects the equity portion of the balance sheet. Other options such as working capital management, net working capital decision, and the controller's duties relate to day-to-day financial management and control of the company's operations. Capital budgeting refers to the process of allocating resources for long-term investments or projects.

The Decision to Issue Additional Shares of Stock Is an Example