Alpha Company Issues a Trade Acceptance with Itself and Beta

question 41

Multiple Choice

Alpha Company issues a trade acceptance with itself and Beta Company as parties. A trade acceptance is

• A)a draft.
• B)an order to accept delivery of money.
• C)a promise to accept delivery of goods.
• D)a promise to deliver goods.

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Definitions:

Labor

The application of physical and cognitive labor in the manufacture of goods and provision of services.

Entrepreneur

An individual who initiates, organizes, and operates a business venture while assuming the associated risks.

Compensated

To be given something, typically money, in recognition of service, effort, or loss.

Profit

The financial gain realized when the revenue generated from business activities exceeds the expenses, taxes, and costs associated with sustaining the business operations.