What Is a Primary Reason Why Some Small Businesses Resist

question 33

Multiple Choice

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

• A)Because the large size creates economies of scale and they can charge lower prices
• B)Because the selection in the stores is too large
• C)Because large retailers attract crime to neighborhoods in which they are based
• D)Because community leaders do not like the top management
• E)Because large retailers almost never hire local workers as employees

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Definitions:

Liability Account

An account on the balance sheet representing amounts owed to creditors or other parties, typically categorized as current or long-term.

Adjusting Entry

A journal entry made in accounting records to correct or allocate revenues and expenses to the appropriate period.

Wages Expense

This is the total amount of wages a company pays to its employees, which is considered an expense on the income statement.

Accrued Wages

Refers to wages earned by employees but not yet paid by the employer.