The Idea That a Business Will Continue to Operate Instead

question 265

True/False

The idea that a business will continue to operate instead of being closed or sold underlies the going-concern assumption.

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Definitions:

Annually Balanced Budget

A financial plan where government's revenues are equal to its expenditures within a one-year period, resulting in no deficit.

Economic Stability

The condition of an economy characterized by steady growth, low inflation, and low unemployment, indicating overall health.

Cyclical Swings

Refers to the fluctuations in economic activity that occur over time, typically involving periods of economic expansion and contraction.

Shareholder Rights Plan

A shareholder rights plan, often called a "poison pill", is a strategy employed by corporations to deter hostile takeovers by making the acquisition prohibitively expensive.