In a Competitive Market, the Actions of Any Single Buyer

question 96

Multiple Choice

In a competitive market, the actions of any single buyer or seller will

• A)discourage entry by competitors.
• B)influence the profits of other firms in the market.
• C)have a negligible impact on the market price.
• D)None of the above is correct.

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Definitions:

Withdrawals

Withdrawals refer to the act of taking money out of a bank account, but in a business context, it often refers to the owner taking funds out of the business for personal use.

Income Summary

An account used in the closing process in accounting to gather all revenues and expenses for a period before transferring the net result to the capital account.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Expenses Closed

The process at the end of an accounting period where expense accounts are closed and their balances transferred to a summary account.