Jimmy,Walter,Mike,and Bill Run a School for Political Candidates

question 114

Multiple Choice

Jimmy,Walter,Mike,and Bill run a school for political candidates.The school has fixed costs of $10 million,variable costs of $4 million,and total revenue of $15 million.In the short run the school will _____ and in the long run the school will ___.

• A)operate;stay in business
• B)operate;go out of business
• C)shut down;stay in business
• D)shut down;go out of business

Distinguish between assets, liabilities, equity, revenues, and expenses.

Comprehend the sequence and preparation of financial statements.

Calculate net income or net loss correctly.

Recognize the significance and placement of withdrawals and expenses in financial reporting.

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Definitions:

Unfunded Mandate Reform Act

A 1995 United States federal law aimed at limiting the number and cost of federal mandates imposed on state and local governments and private sector businesses.

Medicaid Coverage

A health insurance program in the United States for low-income individuals and families that provides medical and health-related services.

Affordable Care Act

Federal legislation passed in 2010 aimed at expanding healthcare coverage, reducing healthcare costs, and improving healthcare system efficiency in the United States.

Supremacy Clause

A provision in the U.S. Constitution that establishes that federal law takes precedence over state laws and constitutions when they are in conflict.