Using His Own Money and Resources,Justin-Who Recently Resigned from His

question 7

Multiple Choice

Using his own money and resources,Justin-who recently resigned from his job-started a new business based on the innovative ideas that he himself had generated.This is an example of a(n) :

• A) entrepreneurship.
• B) joint venture.
• C) business incubation.
• D) diversification strategy.
• E) bootlegging venturE.

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Definitions:

Deferred Tax Liabilities

Future tax payments owed to tax authorities due to temporary differences between accounting income and taxable income.

Municipal Bond

A debt security issued by municipalities to finance its capital expenditures, often tax-exempt for investors.

Warranty Expense

Costs incurred by a company due to repairing or replacing products under warranty.

Bad Debts Expense

An expense reported on the income statement, representing the money lost by a business from non-recoverable credit sales.