Exhibit 23-1 -If the Company Has $2,475,000 in Funds to Distribute to Funds

question 80

Multiple Choice

Exhibit 23-1

-If the company has $2,475,000 in funds to distribute to unsecured creditors,how much do the owners of the firm receive in Case III?

• A) $75,000
• B) $0
• C) $150,000
• D) $225,000

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Definitions:

Surplus

The situation in which the quantity of goods produced exceeds the quantity of goods demanded. Surpluses can result in price drops for products or services, reflecting a mismatch in supply and demand.

Price Ceiling

A cap set by authorities on the maximum price for a good or service, aimed at safeguarding consumers.

Price Floor

A minimum price set by the government or other agency, below which a product cannot legally be sold.

Shortage

A situation where the demand for a product or service exceeds the supply available.