Answer: risk avoidance
Explanation:
Risk avoidance is simply defined as the process by which safeguards are applied in order to avoid a negative impact. It should be noted that a risk avoidance strategy helps to eliminate all risk and organizations apply safeguards to both potential threats and vulnerabilities.
Risk avoidance helps to remove hazards, and the activities that'll have a negative impact on the business.
Answer:
1. T-account balances.
<em>Common stock</em>
$50,000
<em>Land </em>
$20,000
<em>Cash </em>
$34,500
<em>Note Payable</em>
$15,000
<em>Supplies </em>
$900
<em>Trade Payable</em>
$400
<em>Equipment </em>
$10,000
2. A classified balance sheet for Lantana Company
Non - Current Assets
Land $20,000
Equipment $10,000
Total Non - Current Assets $30,000
Current Assets
Supplies $900
Cash $34,500
Total Current Assets $35,400
Total Assets $65,400
Equity and Liabilities
Equity
Common stock $50,000
Total Equity $50,000
Current Liabilities
Trade Payable $400
Total Current Liabilities $400
Non - Current Liabilities
Note Payable $15,000
Total Non - Current Liabilities $15,000
Total Equity and Liabilities $65,400
Explanation:
T-account balances.
Common stock
$50,000
Land
$20,000
Cash
$50,000 - $5,000 - $10,000 - $500 = $34,500
Note Payable
$15,000
Supplies
$900
Trade Payable
$900 - $500 = $400
Equipment
$10,000
This scenario highlights a specific business practice known as <u>reciprocity</u>.
<h3>What is reciprocity</h3>
Reciprocity can be defined as the process in which two companies engages in a business transaction with one another by buying product from each other . This simply means that companies A buy product from company B and company B return the favor by buying a product from company A.
Based on the given scenario the both companies engages in what is called reciprocity by exchanging business transaction with each other.
Therefore this scenario highlights a specific business practice known as <u>reciprocity</u>.
Learn more about Reciprocity here:brainly.com/question/15149544
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Business, Culinary/food handling permit.
