The Reluctance of Shipping Companies to Switch from Sail to Steam

question 5

Multiple Choice

The reluctance of shipping companies to switch from sail to steam propulsion can be attributed to the fact that:

• A)The owners of shipping company were resistant to new technology
• B)For several decades after the introduction of steam ships,sailing ships were faster,cheaper,and more reliable
• C)Complementary resources such as engineers and coaling stations were scarce
• D)Shipping company owners were over the environmental impact of coal burning ships

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Definitions:

Journalize

The process of recording transactions in a company's journal, marking the first step in the accounting cycle.

Transactions

Economic events that involve transferring resources between entities, affecting financial statements.

Equipment

Assets used in the production or supply of services, often subject to depreciation over their useful lives.

Owner's Capital

The amount of money and other forms of assets invested into a business by the owner(s), minus any withdrawals, representing the owner’s equity.