In the Circular-Flow Diagram, an Organization That Produces Goods and Services

question 72

Multiple Choice

In the circular-flow diagram, an organization that produces goods and services for sale is a:

• A) government.
• B) factor.
• C) household.
• D) firm.

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Definitions:

Control

The power to direct the financial and operating policies of an entity with an aim to gain economic benefits from its activities.

PSAB Standards

The Public Sector Accounting Board (PSAB) standards are guidelines for financial accounting and reporting in the public sector in Canada.

Canadian Governmental Reporting Standards

Standards and guidelines for financial reporting specifically designed for the public sector in Canada.

OSC

The Ontario Securities Commission, a regulatory agency in Ontario, Canada that oversees the capital markets in the province.