For Which of the Following Would an Organization Most Likely

question 29

Multiple Choice

For which of the following would an organization most likely engage in new task buying?

• A) A small portable welding machine for use in making repairs.
• B) A new desktop copying machine.
• C) Dishwashing detergent for use in a restaurant.
• D) A new desk chair to replace one that had broken.
• E) A 10,000 square foot prefabricated steel building for use as a warehouse.

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Definitions:

Income-Sharing Ratio

The proportion in which partners in a business agree to distribute the net income or loss.

Salary Allowance

A fixed amount or benefit often added to an employee's salary, such as for travel or housing.

Capital Balance

The amount of money that shareholders have contributed to a company plus retained earnings or minus accumulated losses.

Net Income

What a business financially gains in the end, after subtracting expenses and taxes from its initial revenue.