If a Person Starting a Business Had an Investment of a Building

question 38

Multiple Choice

If a person starting a business had an investment of a building, valued at $300,000 with an $180,000 outstanding mortgage and issued stock for the balance, the effect would be to:

• A)increase assets by $120,000.
• B)increase assets by $180,000.
• C)increase stockholders' equity by $120,000.
• D)increase stockholders' equity by $300,000.

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Definitions:

Derogatory Term

A word or phrase used to disrespect or demean an individual or group, often reflecting prejudice or discrimination.

Submissive Role

The act or condition of accepting or yielding to the authority or will of another person or group.

Adaptive Behavior

The ability to modify one's behavior in response to changes in the environment or circumstances.

Fringe

In a societal context, refers to ideas or activities that are unconventional or lie at the edge of mainstream acceptance.