A Simplified Representation of the Real World That Is Used

question 288

Multiple Choice

A simplified representation of the real world that is used to explain economic phenomena is a(n)

• A) map.
• B) model.
• C) assumption.
• D) implication.

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Definitions:

Inventories

Goods or materials that a business holds for the purpose of sale or production.

Subsidiary Entity

A company that is controlled by another company, known as the parent company, through ownership of more than half of its voting stock or through control of its operations.

Parent Entity

A corporation that owns enough voting stock in another corporation to control management and operations by influencing or electing its board of directors.

Non-depreciable Asset

An asset that is not subject to depreciation due to its indefinite useful life or that it maintains its value over time, such as land.