Why Might Several Competing Corporations Join Together in an Association

question 28

Multiple Choice

Why might several competing corporations join together in an association?

• A) because there is often strength in numbers
• B) because they often have common issues that may affect an entire industry
• C) because they can all benefit from governmental policies
• D) all the above

---

Definitions:

Deposit in Transit

A sum of money transferred or sent to a bank account but not yet recorded in the account's available balance, often due to processing times.

Outstanding Check

A check that has been written by a company but has not yet been cashed or cleared by the bank.

Accounting Records

Documents and books that capture a company's financial transactions, including journals, ledgers, and financial statements.

Cash Account

An account where all transactions are made in cash, including receipts and payments.