Which of the Following Best Qualifies as a Firm's Internal

question 41

Multiple Choice

Which of the following best qualifies as a firm's internal stakeholder?

• A) an auditor assigned to the firm by a federal government agency
• B) a labor union with whom the firm's employees can affiliate
• C) a manager taking care of the firm's operations in a foreign market
• D) a competitor manufacturing the same products as that of the firm

---

Definitions:

Capital Account Balances

The amounts recorded in the equity section of the balance sheet, representing owners' contributions and retained earnings in a business.

Liquidation

The process of winding down a company by selling off its assets to pay creditors and distribute any remaining assets to shareholders.

Net Pay

Gross pay less payroll deductions; the amount the employer is obligated to pay the employee.

Payroll Taxes

Taxes that employers are required to withhold from employees' paychecks and/or pay on behalf of their employees, including Social Security and Medicare taxes.