Why Is Entrepreneurial Ability Considered a Factor of Production

question 16

Multiple Choice

Why is entrepreneurial ability considered a factor of production?

• A) because it is a physical input such as land, labor, and capital
• B) because entrepreneurs assume the risk of producing output, an important part of the production process
• C) because entrepreneurs work very long hours and demand large profits for the work that they accomplish
• D) because it is an input that can be used by itself to produce many goods and services desired by society

Recognize and apply critical thinking and problem-solving steps in personal and academic contexts.

Understand the importance of and strategies for effective team collaboration.

Identify the starting steps in problem-solving, acknowledging known and unknown elements.

Develop strategies to overcome math or science anxiety.

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Definitions:

Lease Liability

A financial obligation representing the present value of all future lease payments a lessee is committed to make under lease agreements.

Invests

The act of allocating resources, usually money or capital, in something to earn financial returns or gain profitable outcomes.

Lump Sum

An amount of money paid in a single payment, rather than in installments.

11% Return

A specific rate of return on an investment, denoting a gain of eleven percent on the original amount invested.