A Technique That Allows the Small Business Owner to Perform

question 38

Multiple Choice

A technique that allows the small business owner to perform financial analysis by understanding the relationship between two accounting elements is called:

• A)creating the pro forma.
• B)budgeting.
• C)break-even analysis.
• D)ratio analysis.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries.

Comparative Advantage

The ability of an individual, firm, or country to produce a certain good or service at a lower opportunity cost than other producers.

International Trade

The exchange of goods, services, and capital between countries and territories, allowing for greater variety of consumption and efficiencies in production.