The Compagnie Naturelie Sells Mounted Butterflies,using Butterfly Bait It Buys

question 48

Multiple Choice

The Compagnie Naturelie sells mounted butterflies,using butterfly bait it buys from another firm for $20 thousand.It pays its workers $35 thousand,pays $1 thousand in taxes,and has profits of $3 thousand.What is its value added?

• A)$3 thousand
• B)$19 thousand
• C)$39 thousand
• D)$59 thousand

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Definitions:

General Cash Offers

A public offering in which securities are sold for cash to the general investing public.

Flotation Costs

The costs associated with issuing new securities, including underwriting fees, legal expenses, and registration fees.

Rights Offerings

A method by which a company raises capital by giving existing shareholders the right to buy additional shares at a discount.

Market Value

The existing market price for the acquisition or sale of an asset or service.