The Continuity Assumption States That a Business Will Continue to Operate

question 100

True/False

The continuity assumption states that a business will continue to operate into the foreseeable future.

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Definitions:

Defined Contribution Plan

A retirement savings plan where contributions are defined, but future benefits depend on investment performance.

Risk-free Return

The theoretical return on investment with no risk of financial loss, often represented by the yield on risk-free government bonds.

Standard Deviation

A measure of the dispersion or variability of a set of data points from their mean, used in finance to indicate the volatility of an investment.

Defined Contribution Plan

A retirement plan where an employee, employer, or both make contributions on a regular basis, but the final benefit received depends on the plan's investment performance.