Owners' Equity in a Business Increases as a Result of Which

question 32

Multiple Choice

Owners' equity in a business increases as a result of which of the following?

• A)Payments of cash to the owners.
• B)Losses from unprofitable operation of the business.
• C)Earnings from profitable operation of the business.
• D)Borrowing from a commercial bank.

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Definitions:

Means-Ends Test

A method of ethics that evaluates actions by examining the goals they seek to achieve and the means used to achieve those goals.

Full Strict Scrutiny

A legal standard requiring the government to prove that a law or policy is necessary to achieve a compelling state interest and is narrowly tailored to achieve that interest.

Compelling Government Purpose

A legal concept referring to a reason the government may use to justify the imposition of restrictions that might otherwise infringe on individual rights, provided it is necessary for a significant public goal.

Separation of Powers

A foundational principle of governance where the state's responsibilities are divided among different branches, typically the legislative, executive, and judicial branches, to prevent the concentration of power.