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The Discussion of the Business Enterprise System in the Business

question 11

Multiple Choice

The discussion of the business enterprise system in the Business and Society class today became heated when a debate broke out as to which capitalist system Canada should employ.Jamal argued that the Canadian government should apply a __________model Whereby economic decision making is left to those individuals or enterprises who own the means of production.A profit motivation,with limited government involvement, would create a competitive market system.Crystal agreed,but added that accountability to society by business was also important and therefore a ____________was better.


Definitions:

Cash Safety Stock

The minimum amount of cash that a company needs to keep on hand to protect against unforeseen variability in cash flow.

Safety Stock

Extra inventory held by a company to prevent stockouts caused by unforeseen variations in supply and demand.

Collection Time

The time duration that a business takes to recover the payments owed to it by its clients, often measured from the date of sale or service delivery.

Collection Float

The time interval between when a check is deposited in a bank and when the funds are made available.

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