As a General Rule, the More Capital Employed with Workers

question 105

Multiple Choice

As a general rule, the more capital employed with workers, the _____ their productivity and the _____ their earnings.

• A) lower; higher
• B) lower; lower
• C) higher; higher
• D) higher; lower

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Definitions:

Book Value

The net value of an asset or liability recorded in financial statements, calculated as original cost minus accumulated depreciation or amortization.

Available-for-sale Debt Investment

A type of financial asset representing debt instruments that a company plans to sell before their maturity date but are not actively traded for profit in the short term.

Unrealized Gain-Equity

An increase in the value of an investment or asset that has not been sold, as recorded in the equity section of the balance sheet.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.