Examples of ________ Are the AFL-CIO (A Union) and the National

question 71

Multiple Choice

Examples of ________ are the AFL-CIO (a union) and the National Federation of Independent Business. Both are voluntary groups with the purpose of advancing member interests.

• A) mutual-benefit organizations
• B) nonprofit organizations
• C) volunteer co-ops
• D) for-profit organizations
• E) trade alliances

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Definitions:

Percent of Sales Method

A financial analysis tool used to forecast future expenses or accounts such as bad debts, based on a percentage of sales.

Bad Debts Expense

Represents the amount of accounts receivable a business does not expect to collect and charges off as a loss in its financial statements.

Net Credit Sales

The total revenue from sales made on credit minus any returns or allowances.

Promissory Note

A fiscal device comprising a binding commitment from one party to another to remit a precise sum of money, which can be demanded anytime or on a predetermined date.