Which of the Following Is an Example of a Liability

question 6

Multiple Choice

Which of the following is an example of a liability?

• A)An amount which must be paid to a business that sold you some supplies
• B)The obligation to transfer the net assets of the business to its owners
• C)Equipment purchased by the business on a long-term payment plan
• D)The amount contributed to the business by your partner

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Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, often associated with cultural and economic integration.

Competitive Forces

Elements in the external environment that influence an organization's competitive position, including competition, customer power, supplier power, the threat of new entrants, and the threat of substitute products or services.

Porter

Michael Porter, a renowned economist known for his theories on economics, business strategy, and competitive advantage.

Industry

The sector of an economy that is concerned with production and manufacturing of goods, or provision of services.