Common Equity Refers to the Sum of Which of the Following

question 29

Multiple Choice

Common equity refers to the sum of which of the following balance sheet accounts?

• A) Common stock and retained earnings
• B) Book value,retained earnings,and common stock
• C) Common stock,additional paid-in capital,retained earnings
• D) Either answer a or c above could be correct depending on whether the firm has "par" or "no par" stock.
• E) Both b and c are correct since additional paid-in capital is equivalent to book value.

---

Definitions:

Glass Ceiling

An invisible barrier that prevents minorities and women from rising to the upper rungs of the corporate ladder, regardless of their qualifications or achievements.

Affirmative Action

Policies or measures aimed at increasing the representation of minorities and women in areas of employment, education, and business from which they have been historically excluded.

Reverse Discrimination

Discrimination against members of a dominant or majority group, often as an attempt to correct historical injustices.

Occupational Stress

The stress experienced as a result of job-related pressures and challenges which can affect performance and well-being.