Match the Most Appropriate Term to the Definition

question 27

Multiple Choice

Match the most appropriate term to the definition.
-A voluntary legal liability from the act of another who acted in the hope the liability would be assumed

• A)par value
• B)dissolution
• C)personal liability
• D)indefinite life span
• E)partnership
• F)sole proprietorship
• G)corporation
• H)limited partnership
• I)pooling agreement
• J)ratification

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Definitions:

Gross Profit Percentage

A financial metric indicating the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Undervalued Inventory

Inventory that is reported at a value lower than its actual market value, potentially affecting financial statements and tax liabilities.

Cost Method

An accounting method used to value an investment, based on the cost to acquire it, without considering its fair market value changes.

Voting Shares

Shares that grant the holder the right to vote on corporate matters, typically related to company governance.