Which of These Is a Correct Comparison of Large and Small

question 110

Multiple Choice

Which of these is a correct comparison of large and small businesses?

• A)Big businesses create more new jobs than small businesses.
• B)Big businesses are less efficient at producing and delivering specialty products than small businesses.
• C)Small businesses show consistently lower profit margins than big businesses.
• D)Big businesses outnumber small businesses by a wide margin.
• E)Small business formations are on the decline,but the rate for big businesses is increasing.

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Definitions:

Allowance for Doubtful Accounts

A contra asset account representing the amount of accounts receivable a company does not expect to collect.

Equity

Equity represents the value that would be returned to a company’s shareholders if all the assets were liquidated and all the debts repaid.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a business's operating cycle, whichever is longer.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and are therefore written off as a loss.