One Reason That Governments May Intervene in the Operation of a Business

question 25

Multiple Choice

One reason that governments may intervene in the operation of a business through regulation is to:

• A)increase monopoly profits.
• B)reduce the amount of information consumers have about a product.
• C)increase negative externalities.
• D)promote competitive behavior.
• E)decrease positive externalities.

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Definitions:

Job Order Cost

A cost system that assigns costs directly to a specific job or batch of product, tracking direct labor, direct materials, and overhead.

Crude Oil Refining

The industrial process of transforming crude oil into usable products such as fuel, gasoline, and diesel.

Perpetual Inventory

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Subsidiary Ledgers

Detailed ledgers that contain information supporting entries recorded in a general ledger, such as accounts receivable or accounts payable details.