Which Business Device Involves the Creation of a New Business

question 118

Multiple Choice

Which business device involves the creation of a new business by two or more companies,often for a limited period of time?

• A) Multinational enterprise
• B) International joint venture
• C) Horizontal merger
• D) Vertical merger

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Definitions:

Time Period Assumption

An accounting principle that allows the business activities to be divided into artificial time periods for financial reporting.

Adjusted Trial Balance

A listing of all company accounts that will appear in the financial statements after adjustments have been made for journal entries.

Current Liability

An obligation due to be paid within a year, including accounts payable, short-term loans, and other similar debts.

Notes Payable

Financial obligations represented by promissory notes, where the borrower agrees to pay back a specified sum of money on demand or at a determined future date.