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  2. Suppose you run a consulting firm offering business advice to clients:

    • Intangible Assets: Your brand reputation and client relationships are worth $5,000.
    • Current Liabilities: You owe your graphic designer $300 for creating marketing materials.
    • Long-Term Liabilities: A business expansion loan of $10,000 is part of your balance sheet.
    • Owner’s Equity: You started the firm with $8,000, and you’ve retained $2,000 in earnings.
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