A Company Issues 1 Million Shares of Common Stock with a Par

question 138

Multiple Choice

A company issues 1 million shares of common stock with a par value of $0.02 for $15 a share.The entry to record this transaction includes a debit to Cash for:

• A)$20,000 and a credit to Common Stock for $20,000.
• B)$15,000,000 and a credit to Common Stock for $15,000,000.
• C)$15,000,000,a credit to Common Stock for $20,000,and a credit to Additional Paid-in Capital for $14,980,000.
• D)$20,000,a debit to Capital Receivable for $14,980,000,a credit to Common Stock for $20,000,and a credit to Additional Paid-in Capital for $14,980,000.

Identify agroecology and differentiate it from organic farming.

Explain fish ranching and assess its economic viability.

Evaluate different forms of agriculture for sustainability, including challenges associated with certain organic farming practices.

Understand the concept of agroforestry and its benefits for social, economic, and environmental sustainability.

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Definitions:

Hedge Ratio

A ratio used to measure the proportion of an investment's risk that is being mitigated by a hedge, aiming to reduce potential losses.

At-the-money

A term used in options trading to describe an option where the market price of the underlying asset is equal to the option's strike price.

Straddle Position

An investment strategy involving the purchase or sale of both a call option and a put option on the same asset, with identical strike prices and expiration dates, used to bet on volatility.

Delta-hedging

A strategy used in options trading to reduce the risk of price movements of the underlying asset by offsetting positions.