Complete the Following Using the Terms Listed Below

question 175

Multiple Choice

Complete the following using the terms listed below.
-A(n) ______ is a type of business owned by only a few shareholders and the shares are generally unavailable to outsiders.

• A)sole proprietorship
• B)small business
• C)corporation
• D)merger
• E)acquisition
• F)horizontal merger
• G)conglomerate merger
• H)cooperative
• I)vertical merger
• J)business incubators
• K)business plan
• L)closed corporation
• M)preferred stock
• N)franchising

Understand the definition and accounting treatment of salvage value in asset depreciation.

Recognize the process and rationale for asset revaluation and changes in depreciation estimates.

Apply and differentiate various depreciation methods, including straight-line, declining balance, and units-of-production.

Evaluate the efficient use of assets in generating sales through metrics like total asset turnover.

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Definitions:

Common Stock

Equity without priority for dividends or in bankruptcy.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a predetermined price within a specific time frame.

Exercise Price

The rate at which a call option allows buying or a put option allows selling of the underlying financial instrument or commodity.

Put Option

A contractual agreement allowing the possessor the choice, not the duty, to dispose of a particular volume of an underlying asset at an agreed-upon rate before a certain deadline.