Financing or Other Resources That a Government Grants to a Firm

question 33

Multiple Choice

Financing or other resources that a government grants to a firm or group of firms, to ensure their survival or success is referred to as a ________.

• A) premium
• B) subsidy
• C) quota
• D) grant

---

Definitions:

Depreciation Expense

The allocated portion of the cost of a company's fixed assets that is written off each year, reflecting the asset's usage and wear and tear.

Insurance Premium

The amount paid periodically to an insurance company by policyholders for covering their risk.

Income Statement

The income statement is a financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, including assets, liabilities, and shareholders' equity.