Use the Table for the Question(s) Below

question 35

Multiple Choice

Use the table for the question(s) below.
Balance Sheet
Net property, plant,

-If the above balance sheet is for a retail company, what indications about this company would best be drawn from the changes in stockholders' equity between 2007 and 2008?

• A) The company is very profitable because it is obviously collecting receivables faster.
• B) The company is selling its property, plant and equipment, which may result in a long-term deficiency in production capacity.
• C) The company's net income in 2008 was negative.
• D) No conclusions can be drawn regarding stockholders' equity without additional information.

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Definitions:

Labor-Abundant

Describes economies or regions with a large workforce relative to the capital or land available.

Factor Endowments

Refers to the quantities of productive resources a country has available, including labor, land, and capital.

Trade Advantage

The benefit or edge a country, region, or business has in producing a specific good or service more efficiently than competitors.

Labor-Abundant

Describes an economy or sector that has a high availability of labor relative to capital.