Which of the Following Is Correct If at the End

question 5

Multiple Choice

Which of the following is correct if at the end of Crystal Imports' first year of operations, assets are $800,000 and equity is $720,000?

• A) The owner must have invested $720,000 to start the business.
• B) The business must be operating profitably.
• C) Liabilities are $80,000.
• D) Liabilities are $1,520,000.

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Definitions:

Service Business

A type of business that provides intangible products, such as expertise, experience, or access, rather than physical goods.

Alternative

A term used to describe an option or choice among multiple possibilities, often referring to solutions, methods, or investments.

Limited Liability Company

A corporate form that merges the tax benefits of a sole proprietorship or partnership with the limited liability offered by a corporation.

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law, offering legal services to clients.