You Could Borrow Money from Friends and Family Who Would

question 43

Multiple Choice

You could borrow money from friends and family who would like to invest in your business or you could offer them ________.

• A) Equity
• B) Debt
• C) Stock
• D) Bonds
• E) Notes

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Definitions:

Gross profit

The difference between revenue and the cost of goods sold (COGS), representing the profit made before deducting operating expenses.

Net income

The profit of a company after all revenues, costs, and expenses have been subtracted, indicating the actual earnings.

Periodic inventory system

An inventory accounting system where updates to inventory levels are made on a periodic basis, rather than each time a sale or purchase occurs.

Physical inventory

The actual counting and recording of merchandise goods and materials held by a business for the purpose of verifying stock levels and value.