The Circular Flow of Economic Activity Is a Model of The

question 27

Multiple Choice

The circular flow of economic activity is a model of the:

• A) flow of goods, resources, payments, and expenditures between the sectors of the economy.
• B) influence of government on business behavior.
• C) influence of business on consumers.
• D) role of unions and government in the economy.

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Definitions:

Corporate Responsibility

This term refers to the self-imposed obligation of companies to act in a manner that is socially and environmentally beneficial.

Financial Statements

Formal records of the financial activities and position of a business, person, or entity, presenting the financial performance over a specific period.

Sarbanes-Oxley Act

A United States federal law that set new or enhanced standards for all U.S. public company boards, management, and public accounting firms.

Auditing Function

The process of examining and verifying a company's financial statements and records to ensure accuracy and compliance with accounting standards.