A Business Borrows $10 000 from the Bank

question 26

Multiple Choice

A business borrows $10 000 from the bank.What effect does this transaction have on the accounting equation?

• A) An increase in the asset cash of $10 000 and an increase in the liability bank loan of $10 000.
• B) An increase in the asset cash of $10 000 and a decrease in the liability bank loan of $10 000.
• C) A decrease in the asset cash of $10 000 and a decrease in the liability bank loan of $10 000.
• D) A decrease in the asset cash of $10 000 and an increase in the liability bank loan of $10 000.

Recognize the purposes of business messages, including informing, persuading, and promoting goodwill.

Learn how to orient messages for the audience by understanding their perspective and anticipating their reactions.

Grasp the significance of meaning in the communication process and the role of feedback in ensuring message comprehension.

Know the stages of the writing process and the importance of spending sufficient time on each phase.

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Definitions:

Enhancing Product

Activities or modifications aimed at improving a product’s appeal, functionality, or market competitiveness.

Form Utility

Form utility refers to the value added to goods through the manufacturing process, transforming raw materials into finished products that are more desirable to consumers.

Appealing To Buyers

Strategies used by companies to attract and persuade potential customers to purchase their products or services.

Direct Channel

A distribution method where a company sells its products or services directly to its customers without the use of intermediaries or third parties.