Andrew Cooper Decides to Become a Part Owner of a Corporation

question 58

Multiple Choice

Andrew Cooper decides to become a part owner of a corporation. As a part owner, he expects to receive a profit as payment because he has assumed the risk of

• A) serious inflation eroding the purchasing power of his investment.
• B) being paid before the suppliers and employees are paid.
• C) losing his home, car, and life savings.
• D) losing the money he has invested in the corporation and not receiving profits.
• E) the company giving all of the profits to local communities.

---

Definitions:

Specific Identification

An inventory costing method where the cost of each specific item in inventory is identified and assigned to that item.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Management

The process of directing, controlling, and organizing the work of a company or organization and its employees.

Price Changes

Refers to variations in the cost of goods or services over a period of time, often impacting consumer purchasing power and business profit margins.