That Some Firms Are Engaged in More Than One Type

question 275

Multiple Choice

That some firms are engaged in more than one type of business is explained, in some cases, by

• A)moral injunctions such as the Golden Rule.
• B)the existence of charitable organizations.
• C)government regulations that discourage the internalization of externalities.
• D)the fact that the internalization of externalities sometimes coincides with the self-interest of the relevant parties.

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Definitions:

Contra Revenue Account

An account that is offset against a revenue account on the income statement.

Sales Returns

Goods returned by customers to the seller after the sale, often due to defects, not meeting the buyer's needs or other reasons.

Cash Sale

A transaction in which goods or services are paid for and received at the time of sale, using cash or its equivalents.

Discount Period

The time frame within which a payment can be made at a reduced rate before it reverts to the full price.