In 2011, What Controversial Action Did the State of California

question 20

Multiple Choice

In 2011, what controversial action did the state of California take to help solve the budget crisis?

• A) required all businesses regardless of size to pay an additional 20 percent tax on property and sales transactions
• B) withheld more than $10 billion in sales tax that was returned to city and county governments
• C) terminated the contracts of more than 1,000 state employees
• D) terminated the existence of more than 400 community redevelopment agencies

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Definitions:

Additional Paid-in Capital

The amount of money investors pay above the par value of stocks during an equity financing round; it represents excess capital collected from shareholders.

Common Stock

Common Stock refers to shares representing ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Contingent Consideration

An obligation of a buyer to transfer additional assets or equity interests to the seller after meeting certain conditions post-acquisition.