The Assumption That Assumes a Company Will Continue in Operation

question 8

Multiple Choice

The assumption that assumes a company will continue in operation long enough to carry out its existing objectives is the:

• A) economic entity assumption.
• B) going concern assumption.
• C) monetary unit assumption.
• D) periodicity assumption.

---

Definitions:

Short Put

An options strategy where an investor sells a put option with the expectation that the market price of the underlying asset will rise.

Premium

An amount paid in excess of the nominal value or in addition to the standard cost, often associated with insurance policies or bonds.

Strip

A strategy in bond investing or a derivative trading term where a bond's interest payments and principal repayments are separated and sold as individual zero-coupon securities.

Patent Hearing

A judicial proceeding to resolve disputes related to the validity or infringement of patents.