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Danielle Ocean Pays for Monthly Pool Maintenance for Her Home

question 104

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Danielle Ocean pays for monthly pool maintenance for her home swimming pool.Last week, the owner of the pool service informed Danielle that he will have to raise his monthly service fee because of increases in the price of pool chemicals.How is the market for pool maintenance services affected by this?


Definitions:

Acquisition Date

The date on which the acquirer obtains control of the acquiree.

General Reserve

Funds set aside out of profits for the future protection of the business and to strengthen its financial position.

Retained Earnings

The portion of a company's profits not distributed to shareholders but instead reinvested in the business or kept as reserve.

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