If a Company Issues Common Stock for $40,000 and Uses

question 189

Multiple Choice

If a company issues common stock for $40,000 and uses $30,000 of the cash to purchase a truck,

• A)assets will be increased by $10,000.
• B)equity will be reduced by $40,000.
• C)assets will be increased by $40,000.
• D)assets will be unchanged.

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Definitions:

Centralized Authority

An organizational structure where decision-making and control are concentrated at the top levels of management, with little delegation of authority to lower levels.

Ethnocentric

Viewing one's own culture or ethnic group as superior to others and judging other cultures by one's own cultural standards.

High-Context

Refers to cultures or communication styles where much of the information is implicitly understood through context, non-verbal cues, and background knowledge, rather than explicitly stated.

Cultural Intelligence

Cultural Intelligence is the ability to relate and work effectively across cultures, understanding and adapting to cultural differences.