Bob Johnson Is the Sole Stockholder of Johnson's Carpet Cleaning

question 92

Essay

Bob Johnson is the sole stockholder of Johnson's Carpet Cleaning Service. Bob purchased a personal automobile for $10,000 cash plus he took loan for $20,000 in his name. Describe how this transaction is related to the business entity concept.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Memory Processes

The mental functions involved in acquiring, storing, and retrieving information.

Encoded

The conversion of information into a specific format for efficient processing, storage, or transmission.

Stored

Refers to the retention of information or substances in a designated space or medium for future use.