The Business Entity Assumption Means That

question 94

Multiple Choice

The business entity assumption means that

• A) the owner is part of the business entity
• B) an entity is organized according to state or federal statutes
• C) an entity is organized according to the rules set by the FASB
• D) the entity is an individual economic unit for which data are recorded, analyzed, and reported

---

Definitions:

Limited And Bundled Choices

The concept where consumers are offered products or services as a package with limited flexibility to alter or customize the components of the package.

Paradox Of Voting

The situation in which the cost of voting (in terms of time, effort) does not seem to be justified by the influence of one vote, yet people still vote.

Appropriations Bill

Legislation passed by a legislative body that provides funding for specific government agencies, departments, or purposes.

Regulatory Capture Effect

A situation where regulatory agencies are dominated by the industries or interests they are charged with regulating, leading to favorable policies for the regulated entities.