Big Box Corporation Has Two Owners Who Share the Work

question 65

Multiple Choice

Big Box Corporation has two owners who share the work equally. Andrea owns 80% of the company shares, and Sheryl owns 20% of the company shares. Andrea invested 60% of the money required to start the business. If the company makes $100,000 profit this year and decides to distribute it all to the owners, how much will Andrea get?

• A) $20,000
• B) $60,000
• C) $80,000
• D) $100,000

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Definitions:

United States

A country located in North America, consisting of 50 states and a federal district, known for its large economy and diverse population.

Quantity Demanded

The aggregate quantity of a product or service that buyers are prepared and capable of buying at a specified price.

Producer Surplus

The difference between the current market price and the cost of production for the firm.

Market Price

The current price at which a good or service can be bought or sold in the open market.