The Economist Credited with Saying, "It Is the Maxim of Every

question 61

True/False

The economist credited with saying, "It is the maxim of every prudent master of a family never to attempt to make at home what it will cost him more to make than to buy," is Adam Smith.

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Definitions:

Owner's Withdrawals

Amounts of money or other assets that the owner takes out of the company for personal use.

Owner's Equity

The total value of assets a business owner has rights to after all liabilities are paid off; equity for sole proprietorships.

Liabilities

Financial obligations or debts that a company owes to others, including loans, accounts payable, and mortgages.

Owner's Equity

The residual interest in the assets of an entity that remains after deducting its liabilities; also known as shareholders' equity for corporations.