If a Company Has Excess Space in Its Building That

question 35

Multiple Choice

If a company has excess space in its building that it rents to another company for $700, what is the effect on the accounting equation during the first month?

• A) Liabilities would decrease $700 and equity would increase $700.
• B) Assets would increase $700 and equity would increase $700.
• C) Assets would decrease $700 and equity would increase $700.
• D) Assets would increase $700 and equity would decrease $700.
• E) Assets would decrease $700 and liabilities would decrease $700.

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Definitions:

Confidence

The feeling or belief in one's abilities, qualities, and judgment.

Situational Leadership Model

A leadership theory proposing that no single leadership style is best. Instead, it depends on the situation at hand and involves adjusting leadership styles based on the maturity level of the followers.

Leadership Style

The manner in which a leader guides, directs, or influences a group, which can vary greatly from authoritarian to democratic or laissez-faire approaches.

Fiedler's Theory

A contingency leadership model proposed by Fred Fiedler that suggests the effectiveness of a leader is determined by the leader's style of interaction with the group and the favorableness of the situation.