If a Company Has Assets of $5,000,000, Liabilities of $3,000,000

question 108

Multiple Choice

If a company has assets of $5,000,000, liabilities of $3,000,000, and retained earnings of $1,200,000, how much is total stockholders' equity?

• A)$ 800,000
• B)$2,000,000
• C)$3,800,000
• D)$1,800,000

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Definitions:

Majority Rule Voting

A voting system in which each member has one vote, and decisions are made by a majority of the votes cast, typically more than half.

Rent-Seeking

The practice of gaining economic benefits through manipulation or exploitation of the political environment rather than through traditional economic competition.

Antitrust Exemption

Legal provisions that allow certain industries or companies to avoid full compliance with antitrust laws, often justified by arguments of national interest or market efficiency.

Voting Paradox

A situation in collective decision-making where individual preferences do not result in a consistent collective order of preferences, showing the complexity of social choice.