Use the Following Information for Questions

question 22

Multiple Choice

Use the following information for questions
Hat Inc.purchased 10,000 shares of Cat Co.'s common shares for $10 a share on January 1.During the year, Cat paid a $50,000 cash dividend and earned $300,000 net income.On December 31, the market value of Cat's stock was $8 a share.The investment is to be held as a long-term investment and the decline in value is not considered permanent.
-Assuming Hat owned 10 percent of Cat's outstanding shares; Hat would report investment income of:

• A)$20,000)
• B)$5,000
• C)$30,000
• D)$50,000

Recognize the characteristics and significance of servant and visionary leadership.

Distinguish between the bases of power and their applications within organizational settings.

Grasp the concept of empowerment and its importance in leadership.

Acknowledge the use of power for the good of the group or organization.

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Definitions:

Trade Deficits

A situation in which a country's imports exceed its exports during a given time period.

Saving Rate

The proportion of disposable income that individuals or households save rather than spend on consumption.

U.S. Economy

The economic system of the United States, characterized by a mixed economy that includes private enterprise alongside limited government involvement.