An Economic Resource That Is Owned by a Company and Will

question 169

Multiple Choice

An economic resource that is owned by a company and will provide future benefits is referred to as:

• A)revenue.
• B)an asset.
• C)retained earnings.
• D)net income.

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Definitions:

Agents

Individuals or entities authorized to act on behalf of another (the principal) in dealings with third parties, typically creating a legal or business relationship.

Sole Proprietorships

A simple business structure where a single individual owns and operates the business.

Action Against Directors

Legal proceedings initiated to hold directors of a company responsible for their actions or omissions that harm the company or its stakeholders.

Preferred Shares

A type of stock that offers dividends at fixed rates before any dividends can be issued to common shareholders and typically does not carry voting rights.