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Ima Broke Is the Sole Owner of Miracles,Inc

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Essay

Ima Broke is the sole owner of Miracles,Inc.Ima needs another loan from a bank to expand her business.In order to improve the chances of receiving a loan,she decides to report the principal of one of Miracles,Inc.'s loans as contributed capital instead of a liability on the balance sheet.Discuss the ethical issue with Ima's treatment of the loan.


Definitions:

Economy's Resources

The total assets available for the production of goods and services within an economy, including natural resources, labor, capital, and technology.

Production Possibilities Curve

A graphical representation that shows the maximum quantity of goods and services that a society can produce, given its current technology and resources.

Production Technology

Refers to the methods and processes used in the production of goods and services.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced in a given period with available resources.

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