A Debt That a Business Owes to an Outside Party

question 135

Multiple Choice

A debt that a business owes to an outside party is called:

• A)an asset.
• B)a liability.
• C)stockholders' equity.
• D)revenue.

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Definitions:

Peaches

Peaches refer to a juicy, soft fruit with a fuzzy skin, or the tree that bears this fruit.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The cost of foregone alternatives when a decision is made, representing the benefits that could have been gained by choosing the next best alternative.

Labor-intensive

Refers to a type of industry or process that requires a large amount of human labor to produce goods or services, as opposed to being heavily automated.