A Company with 100,000 Authorized Shares of $4 Par Common

question 71

Multiple Choice

A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to

• A) decrease retained earnings, increase common stock, and increase paid-in capital
• B) increase retained earnings, decrease common stock, and decrease paid-in capital
• C) increase retained earnings, decrease common stock, and increase paid-in capital
• D) decrease retained earnings, increase common stock, and decrease paid-in capital

Identify the conditions under which collusion among firms might occur and its legal implications.

Explain the effects of cartel formation on output and profits in an oligopoly.

Understand the concepts of duopoly and how it fits within the broader category of oligopoly.

Analyze the strategic decisions firms must make in oligopolistic markets, including collusion, cheating in cartels, and price setting.

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Definitions:

Third-party Logistics (3PL)

A service provided by companies that manage and execute logistics operations for other businesses, including warehousing, transportation, and distribution.

Customs Brokers

Professionals who assist businesses in navigating the complexities of customs regulations to import and export goods.

Non Vessel-owning Common Carriers

Third-party companies that provide shipment forwarding services without owning the vessels used for transportation, typically organizing logistics for shipping goods.

Near-shoring

The practice of transferring a business operation or service to a nearby country, rather than a far-off location, to reduce costs and improve communication and control.