A Firm Has Current Assets of $25,000,long Term Assets of $100,000,long

question 73

Multiple Choice

A firm has current assets of $25,000,long term assets of $100,000,long term liabilities of $50,000,and $50,000 in shareholders' equity.What is its net working capital?

• A) $0
• B) $50,000
• C) $100,000
• D) $25,000

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Definitions:

Corporation

A legal entity that is separate from its owners, providing them with limited liability, and recognized as a person under law that can enter into contracts, own assets, and be sued.

Partner's Liability

The legal responsibility of a partner in a partnership for the debts and obligations of the partnership.

Torts

Legal wrongs committed by one party against another, leading to civil legal liability and compensation claims, not arising from contractual obligations.

Course Of The Business

The usual dealings and functions of a business within its chosen industry.