If You Run a _____,You May Find That You Must

question 70

Multiple Choice

If you run a _____,you may find that you must adhere to certain rules even if you disagree with some of them.

• A)previously owned business
• B)franchise
• C)limited liability corporation
• D)partnership

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Definitions:

Lease Term

The fixed, non-cancellable period of time for which a lease is agreed upon between the lessee and the lessor.

GAAP

Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting.

Capital Lease

A long-term lease agreement that designates the lessee (the person who rents the asset) as having the financial responsibilities and benefits of ownership.

Long-Term Asset

A long-term asset is an asset that is not expected to be converted into cash within a year and is used over a long period, such as property, plant, and equipment.