As a Business Owner,you're in Charge and Can Decide When

question 27

Multiple Choice

As a business owner,you're in charge and can decide when and where you want to work.This managerial freedom best reflects the _____ advantage of small business ownership.

• A)financial
• B)intellectual
• C)time-management
• D)lifestyle

Compute cash received from customers using net sales and changes in related accounts.

Calculate cash paid to suppliers and employees by adjusting cost of goods sold and operating expenses to a cash basis.

Assess the effect of changes in balance sheet accounts on cash provided by (used in) operating activities.

Prepare a statement of cash flows using the indirect method.

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Definitions:

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority.

Joseph Stiglitz

An American economist and professor known for his work on income distribution, risk, and information economics, and a recipient of the Nobel Memorial Prize in Economic Sciences.

NAFTA Treaty

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries and facilitate the free flow of goods and services.

Trade Balance

The difference between a country's exports and imports over a certain period, indicating the net earnings from trade.