Gertrudis Corporation Has $10 Par Value Common Stock with 1,000,000

question 80

Multiple Choice

Gertrudis Corporation has $10 par value Common Stock with 1,000,000 shares authorized, and a value of $7,000,000 before purchasing 3,000 shares of common stock. The resulting number of common shares issued and outstanding is:

• A)750,000 shares issued and 697,000 shares outstanding.
• B)750,000 shares issued and 747,000 shares outstanding.
• C)700,000 shares issued and 697,000 shares outstanding.
• D)700,000 shares issued and 747,000 shares outstanding.

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Definitions:

Balance Theory

A theory in social psychology suggesting that people strive for balance in their relationships and beliefs for cognitive consistency.

Pitchman

A person who promotes and sells a product or service, often using persuasive or catchy pitches, traditionally in a live setting but also often through media.

Balance Theory

A psychological theory suggesting that individuals strive for harmony in their relationships and opinions, leading to changes in attitudes when imbalances occur.

Behavioral Intentions

An individual's planned or anticipated actions in a given situation, often studied in psychology and marketing as precursors to actual behavior.