Which One of the Following Refers to the Option to Expand

question 81

Multiple Choice

Which one of the following refers to the option to expand into related businesses in the future?

• A)Strategic option
• B)Contingency option
• C)Soft rationing
• D)Hard rationing
• E)Capital rationing option

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Definitions:

Fair Market Value

The price at which an asset would sell in the marketplace between a willing buyer and a willing seller, each having reasonable knowledge of the pertinent facts.

Trade-In Allowance

The amount credited to the buyer of a new item for the value of the old item that is being traded in as part of the transaction.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Gain Or Loss

The financial result that occurs when the selling price of an asset differs from its purchase price.