Which Statement Best Describes How the Expansion of Cotton Production

question 33

Multiple Choice

Which statement best describes how the expansion of cotton production in the South affected industry in the North?

• A) Profits from the slave trade and cotton shipping and brokerage provided capital for new factories in the North.
• B) Northern industry declined as most southern cotton was shipped to England.
• C) Wealthy Northerners chose to invest in southern plantations rather than in factories in the North.
• D) Many successful planters invested their profits in northern industry and abandoned cotton planting.

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Definitions:

Gross Revenues

The total sales revenue of a company without any deductions.

Internal Rate

Often refers to the internal rate of return (IRR), a metric used in capital budgeting to estimate the profitability of potential investments.

Cash Inflows

The total amount of money being transferred into a business, usually from operating, investing, and financing activities.

Discount Rate

The rate applied within discounted cash flow analysis for assessing the present worth of forthcoming cash flows.