Economists Use the Term ________ to Refer to the Creation

question 136

Multiple Choice

Economists use the term ________ to refer to the creation of new capital.

• A) investment
• B) entrepreneurship
• C) depreciation
• D) finance

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Definitions:

Controlling Financial Interest

A situation where an entity has the power to govern the financial and operating policies of another entity so as to benefit from its activities.

Consolidated Retained Earnings

The accumulated net income of a corporation and its subsidiaries after dividends have been paid out to shareholders, presented in the consolidated financial statements.

Acquisition

The act of obtaining control of another company by purchasing its shares or assets.

Common Stock

Shares of ownership in a corporation that entitle the shareholder to vote on corporate matters and receive dividends.