A Key Principle of Adam Smith's Economic Theory Was That

question 11

Multiple Choice

A key principle of Adam Smith's economic theory was that

• A)human behavior is inherently irrational.
• B)government should not interfere in the economy.
• C)monopolies promote economic well-being.
• D)mercantilism is the only viable economic system.
• E)laissez faire was a dangerous econo-political theory.

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Definitions:

Inventory Turnover

A ratio that measures how many times inventory is sold and replaced over a certain period, used to evaluate the efficiency of a company's inventory management.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers.

Collection Policies

Guidelines established by a business to manage the collection of accounts receivable or debts owed to it.

Subsidiary Ledger

a detailed ledger that contains the financial transactions of a specific subsidiary account, summarizing its details, and supporting the general ledger.