A Corporation Purchased 1,000 Shares of Its Own $5 Par

question 1

Multiple Choice

A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What amount of revenue is realized from the sale?

• A) $0
• B) $5,000
• C) $2,500
• D) $10,000

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Definitions:

Turnover

A measure of how quickly assets, such as inventory or investments, are converted into sales or revenue within a given period.

Investment Opportunity

A situation where an individual or company can invest in a project or asset with the expectation of generating a favorable return.

Manufacturing Cycle Efficiency (MCE)

A metric that measures the efficiency of the manufacturing process, specifically the proportion of value-added time to total production time.

Throughput Time

The total time taken to manufacture a product from start to finish, including processing, waiting, and transport times.