Match Each of the Following Terms with the Appropriate Definitions

question 200

Multiple Choice

Match each of the following terms with the appropriate definitions.

-The process of allocating the cost of an intangible asset to expense over its estimated useful life.

• A)Obsolescence
• B)Amortization
• C)Depletion
• D)Salvage value
• E)Book value
• F)Land improvements
• G)Copyright
• H)Inadequacy
• I)Patent

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Definitions:

Common Stock

An ownership stake in a company, signified by equity securities, granting the holder voting rights on corporate issues and entitlement to dividends.

Agency Problems

Conflicts of interest that arise when agents (managers or executives) make decisions that benefit themselves rather than the principals (shareholders) they are supposed to represent.

Sole Proprietorships

A company that is both owned and managed by one person, where there is no legal separation between the proprietor and the business itself.