Suppose ZZZ Corporation Issues New Common Stock Worth $25 Million

question 38

Multiple Choice

Suppose ZZZ Corporation issues new common stock worth $25 million in 2020.It uses $18 million of the proceeds to replace obsolete equipment in its factory and $7 million to repay bank loans.As a result, there is an increase in gross investment by:

• A)$7 million.
• B)$25 million.
• C)$18 million.
• D)$11 million.

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Definitions:

Distribution and Exchange

The processes involved in the allocation of goods and services among individuals or groups, and the trading activities that facilitate this distribution.

Drives

Internal forces that motivate individuals towards certain actions or behaviors, often related to meeting basic physiological or psychological needs.

Primary Needs

Fundamental requirements essential for an individual's survival and well-being, such as food, shelter, and safety.

Motivation

the process that initiates, guides, and maintains goal-oriented behaviors.