Which of the Following Statements Is Not True About Small

question 118

Multiple Choice

Which of the following statements is not true about small businesses?

• A) Small businesses provide technical innovation.
• B) Small businesses create cyclical unemployment.
• C) Small businesses provide employment.
• D) Small businesses provide competition.
• E) Small businesses fill the needs of society and other businesses.

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Definitions:

Estimated Life

The expected duration over which an asset is likely to be useful or productive in its intended operation, used for depreciation purposes.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life, resulting in the same depreciation expense each year.

Depreciable Cost

The total cost of a tangible asset that can be depreciated over its useful life, excluding salvage value.

Depreciation Expense

Dividing the expense of a material asset throughout its service life.