The appropriate response is a Natural monopoly, it is a sort of imposing a business model that exists thus of the high repaired expenses or begin expenses of working a business in a particular industry. Furthermore, normal imposing business models can emerge in ventures that require one of a kind crude materials, innovation or other comparative variables to work.
Answer:
True
Explanation:
The principal purpose of building a business is to make profits. A business must provide solutions to particular needs and wants in the community to attract customers. Different entrepreneurs will offer alternative or similar solutions to a specific situation.
Anyone starting a business will target a particular set of customers. He or she must be ready to complete for those customers with other like-minded entrepreneurs. Competition is good in business as it makes entrepreneurs innovate on the best ways to serve their customers. It also gives customers alternatives.
A Joint Venture is a strategic alliance in which two existing companies collaborate to form a third, independent company.
Answer:
The master budget should only be prepared by top management.
Explanation:
A budget is an estimation of the amount of money that a person or business plans to spend on activities within a given period.
Budgeting creates efficiency in spending and reduces waste.
It is an activity that should be carried out by all relevant staff. This is because the staff know where they need to spend money.
It top management independently make a budget, it may not meet some pressing needs of the staff.
Answer:
d. verify that the debits and credits are in balance.
Explanation:
Option A is wrong because without adjusting entries, there is not necessary to adjust the flow of the financial statement.
Option B is wrong because, if we do not give adjusting entries, a debit and a credit entry will not come, and that cannot disturb the income statement.
Option C is wrong because whether the adjusting entries are posted or not, net income will always go to the statement of owner's equity.
The purpose of adjusting entries is to verify that the debits and credits are in balance. Therefore, <em>option D</em> is the answer.
