A Profitable Business Will Attract

question 59

Multiple Choice

A profitable business will attract

• A) new competitors.
• B) government regulation.
• C) increases in marginal revenue.
• D) existing businesses.

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Definitions:

Accounts Receivable

The amount customers are required to pay to a company for already delivered services or products.

FOB Shipping Point

A term used in shipping agreements indicating the buyer is responsible for the goods and shipping costs as soon as they leave the seller's premises.

Perpetual System

An inventory accounting system that records inventory purchases and sales in real-time, providing a continuous record of inventory levels.

Freight Costs

Freight Costs entail the charges incurred for the transportation of goods by land, sea, or air.