A Business Firm Ceases to Exist as a Going Concern

question 56

Multiple Choice

A business firm ceases to exist as a going concern as a result of which one of the following?

• A)divestiture
• B)share repurchase
• C)liquidation
• D)reorganization
• E)capital restructuring

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Definitions:

Ownership of Capital

The possession of capital assets, including tools, buildings, machines, and financial resources, used to produce goods or services.

Social Consciousness

An awareness shared by individuals within a society regarding social issues, injustices, and the need for social change.

Subsidies

Subsidies are financial contributions provided by the government to encourage the production or consumption of a good or service, often to support industries that are considered vital for the national economy.

Incentives

Rewards or penalties that motivate individuals to take specific actions.