Governments Have Authority

question 27

Multiple Choice

Governments have authority

• A) when they are first organized.
• B) when they are popular.
• C) when they are internationally recognized.
• D) when they have the right and power to enforce their decisions.
• E) when people choose to obey the laws they create.

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Definitions:

Tax Value

The value assigned to an asset, liability, or transaction for the purpose of calculating taxes owed, which may differ from book or market values.

Carrying Value

The book value of an asset or liability on the balance sheet, calculated as the original cost minus depreciation or impairment.

Fair Value

The financial sum expected to be received for an asset's sale or needed to transfer a liability, within a systematic deal involving market entities, on the date it is assessed.

Goodwill

The intangible asset that arises when a company acquires another business for a price higher than the fair value of its net identifiable assets.