Michael Hudson Owns 400 Shares of Surefoot Enterprises

question 11

Multiple Choice

Michael Hudson owns 400 shares of Surefoot Enterprises.The capital stock of Surefoot Enterprises has a par value of $8 per share.Michael Hudson sells his 400 shares of Surefoot Enterprises stock to Brian Haas for $15 per share.The effect of this transaction on Surefoot Enterprises,would be to

• A)increase the cash account by $6,000 and increase the capital stock account by $6,000.
• B)increase the cash account by $6,000 and decrease the capital stock account by $6,000.
• C)increase the cash account by $6,000,increase the capital stock account by $3,200,and increase the paid-in capital in excess of par account by $2,800.
• D)Surefoot Enterprises would not record this transaction but would note the change in ownership.
• E)Surefoot Enterprises records this transaction but would not note the change in ownership.

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Definitions:

Union Density

A measure of the proportion of workers who are union members, usually expressed as a percentage of the total workforce.

Manufacturing

The process of producing goods and products using raw materials and machinery.

Substantive Dimension

Refers to the focus on the content or substance of industrial relations, including wages, working conditions, and employment terms.

Union Democracy

Union democracy refers to the practice and principle of democratic governance within labor unions, where decisions are made through the voting and participation of its members.