Net Income

question 164

Multiple Choice

Net Income:

• A)Decreases equity
• B)Represents the amount of assets owners put into a business
• C)Equals assets minus liabilities
• D)Is the excess of revenues over expenses
• E)Represents the owners' claims against assets

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Definitions:

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market, often to maximize their profits illegally or unethically.

Collusive Agreements

Arrangements or agreements, often illegal, between competing firms to limit competition, control prices, or divide markets among themselves.

Cartel

A formal agreement among competing firms to control the market for a certain product by setting prices, limiting supply, or other restrictive practices.