David Has Decided to Open an Auto- Detailing Business

question 69

Multiple Choice

David has decided to open an auto- detailing business. He will pick up an automobile from the client, take it to his parents' garage, detail it, and return it to the client. If he does all of the work himself and takes no legal steps to form a special organisation, which type of business organisation, in effect, has he chosen?

• A)Corporation
• B)Partnership
• C)Proprietorship
• D)Limited liability company

Identify and categorize investments as held-to-maturity, trading, or available-for-sale securities.

Comprehend the accounting treatment and valuation of trading and available-for-sale securities.

Understand the equity method for accounting investments of 20-50% in another company's stock.

Differentiate between the fair value method and equity method of accounting for investments.

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Definitions:

Production Costs

The expenses incurred in the process of creating a product or service, including raw materials, labor, and overhead costs.

Classical Theory

An economic theory that emphasizes free markets, free trade, and the idea that markets, if left to operate without interference, will naturally regulate themselves.

Interest Rate

The cost of borrowing money or the return on saved or invested money, expressed as a percentage of the principal.

Saving and Investment

The act of setting aside income for future use and allocating it to instruments expected to generate returns over time