Which of the Following Is an Example of a Liability

question 11

Multiple Choice

Which of the following is an example of a liability that might be owed by a discount shoe store?

• A) promotional signs
• B) money owed to shoe distributors
• C) money in the cash register
• D) the reduced prices paid by customers

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Definitions:

Substitutes

Goods or services that serve as alternatives to each other, where a rise in the price of one results in a higher demand for the other.

Market

A place or scenario where buyers and sellers interact to trade goods, services, or information, often regulated by supply and demand.

Imperfect Competition

A market structure where the conditions necessary for perfect competition are not satisfied, characterized by factors like different products and barriers to entry.

Market Power

The ability of a firm or group of firms to influence the price of a good or service in the market, often through controlling supply, demand, or both.