Laurie Dexter Starts a Business Called Camden Cleaning

question 164

Multiple Choice

Laurie Dexter starts a business called Camden Cleaning.Dexter invests $10,000 cash in Camden in exchange for its common stock.How would Camden record this transaction?

• A)Cash increases by $10,000 and Cleaning Revenue increases by $10,000.
• B)Cash decreases by $10,000 and Cleaning Revenue increases by $10,000.
• C)Cash increases by $10,000 and Common Stock increases by $10,000.
• D)Cash increases by $10,000 and Common Stock decreases by $10,000.
• E)Cash decreases by $10,000 and Cleaning Expense increases by $10,000.

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Definitions:

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at promoting competition and preventing monopolies by prohibiting anti-competitive practices.

Oligopoly

A market structure characterized by a small number of firms controlling the majority of the market share, leading to limited competition.

Monopolistic Competition

A market structure characterized by many firms offering products that are similar but not identical, allowing for some degree of market power.

Technology

The application of scientific knowledge for practical purposes, especially in industry, to invent tools, devices, and systems that solve problems or enhance capabilities.