Complete the Following Using the Terms Listed

question 83

Multiple Choice

Complete the following using the terms listed.
-The form of business ownership that establishes the firm as a separate legal entity is the _____.

• A)small business
• B)corporation
• C)merger
• D)acquisition
• E)horizontal merger
• F)conglomerate merger
• G)Cooperative
• H)vertical merger
• I)business incubators
• J)business plan
• K)alien corporation
• L)preferred stock
• M)Franchising

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Definitions:

Interest Payments

Payments made to lenders as a return on borrowed capital, typically expressed as a percentage of the principal.

Deficits

Occurs when an entity, typically a government, spends more money than it receives in revenue over a specific period, resulting in a shortfall that needs to be financed.

Inflationary Gap

The difference between the actual level of output in an economy and the output level needed to achieve full employment without inflation.

Budget Surplus

A situation where income or revenues exceed expenditures over a specified period of time.