Which One of the Following Is an Ownership Interest in a Firm

question 18

Multiple Choice

Which one of the following is an ownership interest in a firm?

• A)asset
• B)expense
• C)net income
• D)liability
• E)equity

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Definitions:

Consideration

Something of value that is exchanged between parties in a contract, making the agreement legally binding.

Personal Defense

A defense that can be used to avoid payment to an ordinary holder of a negotiable instrument but not a holder in due course (HDC) or a holder with the rights of an HDC. Personal defenses are also called limited defenses.

HDC

Stands for Holder in Due Course, referring to a party that has acquired a negotiable instrument for value, in good faith, and without notice of any defects.

Primarily Liable

The entity or individual who holds the main responsibility for fulfilling an obligation or compensating for a loss.