Which of the Following Occurs When a Shareholder Invests Cash

question 145

Multiple Choice

Which of the following occurs when a shareholder invests cash in a corporation in exchange for stock?

• A)Both liabilities and stockholders' equity are increased.
• B)Both assets and stockholders' equity are increased.
• C)One asset is increased and another asset is decreased.
• D)Both assets and liabilities are increased.

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Definitions:

SWOT Analysis

A framework for analyzing a company's internal competencies (strengths and weaknesses) and its external environment (opportunities and threats) to inform strategy.

Customer Value Proposition

A business or marketing statement that explains why a customer should buy a product or use a service, highlighting the unique value it provides.

SWOT Analysis

A strategic planning tool that evaluates an organization's strengths, weaknesses, opportunities, and threats to identify critical strategic factors.

Strategy-Related Factors

Elements considered in the planning and execution of a business or marketing strategy, including competition, customer behavior, and market conditions.