Private Property Rights

question 106

Multiple Choice

Private property rights:

• A) are essential elements of a market economy.
• B) do not need to be enforced in market economies.
• C) must be established before a socialist economy can function properly.
• D) ensure an equitable distribution of income in market economies.

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Definitions:

Depreciation Expense

The allocated portion of the cost of a tangible fixed asset written off each year, reflecting its usage and wear and tear.

Patent Amortization

The gradual expensing of the cost of a patent (an intangible asset) over its useful life.

Quality Of Income Ratio

A metric assessing the proportion of income that has been realized or converted into cash, providing insight into the company's cash flow quality.

Receivables

Amounts due to a company for goods or services that have been provided but not yet paid for by the customers.