In Countries Where Businesses Are Government Owned

question 189

Multiple Choice

In countries where businesses are government owned:

• A)profits tend to be higher.
• B)there is less incentive to work hard.
• C)the right amount of each good is produced.
• D)the quality of goods is high but profits are low.

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Definitions:

Periodic Inventory System

An inventory accounting system where stock levels and cost of goods sold are calculated at the end of an accounting period, rather than being continuously updated.

Ending Inventory

The price of items for sale at the closing of a fiscal period.

Lower Of Cost

An accounting principle stating that inventory or other assets should be recorded at the lower of either the original cost or the current market value.

Market

A place or system where buyers and sellers interact to trade goods, services, or securities.