Which of the Following Will Not Cause a Change in the Equity

question 17

Multiple Choice

Which of the following will not cause a change in the equity of a business?

• A) Payment of an interest free business debt.
• B) Withdrawal of cash by the owner.
• C) Sale of land at a profit.
• D) Losses from unprofitable operations.

---

Definitions:

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to preserve competitive market conditions by prohibiting monopolies, cartels, and trusts.

Vertical Mergers

The combination of two or more companies that operate at different stages of production in the same industry, such as a manufacturer merging with a supplier.

Industrial Age

A period of history marked by major industrialization that transformed economies from being primarily based on agriculture and handicrafts to being based on manufacturing and machinery.

Conglomerate Mergers

The combination of companies operating in unrelated industries into a single corporate structure.