Francois Is Determined to Start an Internet Development Company

question 22

Multiple Choice

Francois is determined to start an Internet development company.A family friend had entered the business many years ago and has become quite wealthy.His income, however,levelled off after the first few years because excessive__________ attracted others to the industry,increasing _________.

• A)profits; costs
• B)profits; competition
• C)competition; profits
• D)profits; work ethic
• E)work ethic; profits

---

Definitions:

Accounting

The systematic process of recording, measuring, and communicating financial information about economic entities.

Recording

The act of documenting financial transactions in the books of accounts as part of the accounting process.

Transactions

Financial events that affect the assets, liabilities, or equity of a company, recorded in its accounting system.