If You Are Considering Starting Your Own Business, a Key

question 18

Multiple Choice

If you are considering starting your own business, a key priority for you should be to:

• A) get a loan from your local bank.
• B) incorporate your business.
• C) understand the industry in which a company operates.
• D) apply for a Small Business Administration loan.

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Definitions:

Regulation S-X

Rules and regulations set by the Securities and Exchange Commission (SEC) that dictate the form, content, and requirements of financial statements submitted by public companies in the United States.

Replacement Cost

The current cost of replacing an asset with a new one of the same kind and quality at current prices.

LIFO-to-FIFO Adjustment

A recalculation process that converts inventory valuation from the Last-In-First-Out (LIFO) method to the First-In-First-Out (FIFO) method, affecting cost of goods sold and inventory value.

Inventory

The total amount of goods and materials held by a company that are available for sale or production.