The Rate of Return That Owners of Capital Must Receive

question 213

Multiple Choice

The rate of return that owners of capital must receive in order to induce them to continue supplying the capital is often referred to as

• A) accounting profit.
• B) the normal or market rate of return.
• C) economic profit.
• D) the accounting rate of return.

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Definitions:

Accord And Satisfaction

A legal settlement where a debtor offers something different than originally agreed upon, and if accepted, the debt is considered settled.

Sufficient Consideration

The concept in contract law that something of value, which is mutually agreed upon by the parties involved, must be exchanged for a contract to be legally binding.

Illusory Agreement

A contract or agreement that appears to be binding but lacks the necessary elements to enforce it, often because terms are too vague or one party has the option not to perform.

Monetary Value

The economic worth assigned to goods, services, or assets in terms of currency.