Spring Company Has Assets and Equity That Amount to $260,000

question 168

Multiple Choice

Spring Company has assets and equity that amount to $260,000 and $70,000,respectively.Liabilities total ________.

• A) $70,000
• B) $190,000
• C) $260,000
• D) $330,000

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Definitions:

Corporate Managers

Individuals who are in charge of directing and overseeing the operations and strategies of a corporation.

Stockholders

Individuals or entities that own shares in a corporation, thus holding a portion of its equity and potentially benefiting from its profits.

Principal-Agent Problem

A dilemma in which one party (the agent) is supposed to act in the best interest of another party (the principal) but may act in their own interest instead due to conflicts of interest.

Corporate Structure

Describes the organization of a company, including its legal structure, division of responsibilities, and hierarchical levels.