On June 1,Continental Company Issued 8,000 Shares of Its $10

question 62

Multiple Choice

On June 1,Continental Company issued 8,000 shares of its $10 par common stock to Divide for a tract of land.The stock had a fair market value of $18 per share on this date.On Divide's last property tax bill,the land was assessed at $96,000.Continental should record an increase in Additional Paid-In Capital of

• A) $96,000.
• B) $64,000.
• C) $40,000.
• D) $16,000.

Assess the implications of changes in short-term financial policies on a company's risk profile and liquidity.

Analyze the effects of cash flow movements and financing decisions on the firm's financial condition.

Understand the concept and implications of risk in finance.

Comprehend the strategies used by companies to hedge financial risks, especially exchange rate risks.

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Definitions:

Unity-of-command Principle

A management principle stating that each employee should receive orders from only one superior to avoid confusion and conflict.

Organisation Structures

The hierarchical arrangement of lines of authority, communications, rights, and duties within a company that determines how roles, power, and responsibilities are assigned, controlled, and coordinated.

Decision-making Authority

The power or right delegated to an individual or group to make choices that will affect outcomes within an organization.

Centralised

A structural approach in organisations where decision-making authority is concentrated at the top levels of management.