Households' ________ Limit(s) Firms' Ability to Invest in Capital

question 47

Multiple Choice

Households' ________ limit(s) firms' ability to invest in capital.

• A) investment in stock
• B) savings decisions
• C) supply of land
• D) tax liability

Grasp the accounting implications of mergers and acquisitions including the treatment of goodwill.

Recognize the consolidation process and its effects on the balance sheet and income statement.

Understand the requirements and effects of depreciating and amortizing the assets of a subsidiary in consolidation.

Understand the principles of effective communication and media relations in public administration.

---

Definitions:

Consignment

An arrangement in which goods are left in the possession of another party to sell, with payment to the original owner occurring only after the sale.

Wharfage

A fee charged for the use of a wharf for loading or unloading cargo, or for the temporary storage of goods on the wharf area.

Sell-Off

Transaction in which assets are sold by one firm to another.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.