If an Acquired Franchise or License Is for an Indefinite

question 26

True/False

If an acquired franchise or license is for an indefinite time period, then the cost of the asset should not be amortized.

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Definitions:

Antipoverty Programs

Governmental or non-profit organization initiatives designed to reduce or eliminate poverty by providing financial assistance, education, or job training.

Productive Capacity

Refers to the maximum output a system, economy, or machine can produce over a period of time under normal conditions.

Supply of Land

The total availability of land resources that can be used for various purposes, often considered perfectly inelastic.

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good does not change in response to a change in price.