Marcus Performs an Analysis of His New Business to Anticipate

question 3

Multiple Choice

Marcus performs an analysis of his new business to anticipate its future requirements.He makes a list of the various assets the firm must account for.He categorizes each asset in two lists: one for assets that can be easily converted into cash and the other for assets that have a physical presence.In this scenario, Marcus is analyzing his new business by

• A)creating a balance sheet.
• B)compiling an income statement.
• C)compiling a break-even analysis.
• D)creating a cash flow statement.

---

Definitions:

Diminishing Marginal Utility

The principle that as a person consumes more of a good, the satisfaction (utility) gained from each additional unit decreases.

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.

Noncash Gift-giving

The act of giving gifts that do not involve direct monetary exchange, emphasizing the value of thoughtfulness and relationships.

Marginal Utility

Marginal utility refers to the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.