A Main Disadvantage of a Small Business Is That Employees

question 208

True/False

A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.

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Definitions:

Useful Life

The estimated period of time that an asset is expected to be used by an entity, affecting its depreciation calculation.

Declining-Balance Method

The declining-balance method is an accelerated depreciation technique that applies a constant rate of depreciation to an asset's book value each year, resulting in decreasing depreciation expenses over time.

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Declining-Balance

A method of accelerated asset depreciation where the depreciation expense decreases over time.