All of the Following Are Reasons for the Large Numbers

question 44

Multiple Choice

All of the following are reasons for the large numbers of home-based businesses in the United States EXCEPT that:

• A) the idea that a customer knows where the entrepreneur lives can be a point in favor of trusting in the potential permanence of the firm.
• B) it is inexpensive,since the owner's residence is his or her office.
• C) they generally give customers the strongest sense of legitimacy.
• D) one can get their business going where he or she lives.

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Definitions:

Increase Stockholders' Equity

Refers to the growth in the equity portion of a company's balance sheet, signifying a rise in the net assets owned by shareholders.

Transactions

Financial events or exchanges that affect a company's assets, liabilities, or equity, and must be recorded in the accounting records.

Decrease Stockholders' Equity

A reduction in the value of ownership interest in a company, often due to losses, dividend payments, or share buybacks.

Income Statement

A financial document that reports a company's revenues, expenses, and net income over a specific period.