The Following Data Has Been Collected About Keller Company's Stockholders

question 185

Multiple Choice

The following data has been collected about Keller Company's stockholders' equity accounts: $\begin{array}{lr}\text { Common stock } \$ 10 \text { par value } 20,000 \text { shares } & \$ 100,000\\\text { authorized and } 10,000 \text { shares issued, } 9,000 \text { shares outstanding }\\\text { Paid-in capital in excess of par value, common stock } & 50,000 \\\text { Retained earnings } & 25,000 \\\text { Treasury stock } & 11,500\end{array}$ Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:

• A)1,150.
• B)11,000.
• C)1,000.
• D)21,000.
• E)575.

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Definitions:

Entry Barriers

Entry barriers are obstacles that make it difficult for new firms to enter a market, often protecting existing firms from competition.

Excess Capacity Problem

A situation where a firm has more production capacity than needed to meet demand, leading to inefficient use of resources.

Monopolistic Competition

An economic setup in which several companies offer products that are closely related but not exactly the same, granting them a certain level of influence over the market.

Nash Equilibrium

The situation that occurs in some simultaneous games wherein every player is playing his or her dominant strategy at the same time and thus no player has any reason to change behavior.