A College Student Is Thinking About Running an Ice Cream

question 150

Multiple Choice

A college student is thinking about running an ice cream truck over the summer. Which of the following would likely be an ongoing expense of the business?

• A)The cost of the truck
• B)The cost of the gasoline used
• C)The cost of ice cream scoopers
• D)None of these are ongoing expenses.

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Definitions:

Consolidation

The process of combining assets, liabilities, and other financial items of two or more entities into one.

Corporations

Legal entities that are separate from their owners, offering limited liability to its shareholders, and created under corporate law.

Merger

The combination of two or more companies into a single legal entity, often to achieve greater efficiencies of scale and scope.

Rights and Liabilities

Legal entitlements and responsibilities held by individuals or entities under the law.