Savings Surplus Occurs When an Economic Unit Has Current Income

question 79

True/False

Savings surplus occurs when an economic unit has current income that exceeds its direct investment in real assets.

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Definitions:

Dissolution

A change in the relation of partners caused by any partner ceasing to be associated in the carrying on of the business.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Intellectual Property

A category of property that includes intangible creations of the human intellect, such as inventions, literary and artistic works, designs, and symbols, names and images used in commerce.

Parent Entity

A company that owns more than half of another company, making the latter a subsidiary.