A Service Company Earns Net Income by Buying and Selling

question 205

True/False

A service company earns net income by buying and selling merchandise.

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Definitions:

Extraction Companies

Firms that specialize in the removal of natural resources, such as mining or oil and gas companies, from the earth for commercial use.

Flow of Profits

The continuous movement of earnings back into a business for operational development, expansion, or distribution to shareholders.

Property Rights

Legal rights to possess, use, and dispose of assets including real estate, personal properties, and intellectual properties.

Loggers

Workers or businesses engaged in cutting down trees and transporting the logs to sawmills.