Which Factor of Production Is Paid 'Interest

question 45

Multiple Choice

Which factor of production is paid 'interest'?

• A) Capital
• B) Entrepreneurship
• C) Human capital
• D) Labour
• E) Land

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Definitions:

Legal Obligation

A duty enforced by law, requiring an entity or individual to perform or refrain from performing a certain action.

Date of Record

The date set by a corporation upon which the shareholders must be registered to be eligible to receive dividends or participate in corporate voting.

Common Stock

A type of equity security that represents ownership in a corporation, with holders having a claim on part of the company's assets and earnings.

Paid-In Capital

The amount of money that shareholders have invested in the company through the purchase of its stock, above the par value of the shares.