Which of the Following Statements Best Describes Schumpeter's View of Profits

question 37

Multiple Choice

Which of the following statements best describes Schumpeter's view of profits?

• A)Profits occur only in an economy when full employment is achieved.
• B)Competition within a capitalist economy would tend to result in zero economic profit.
• C)The source of profits,whatever level they may be,is the result of entrepreneurial activity.
• D)Profits occur only when the economy is in a boom.

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Definitions:

Corporate Borrowing

The process by which companies obtain capital through the issuance of debt securities or taking out loans.

Corporation Act

Legislation governing the formation, operation, and dissolution of corporations, detailing their legal rights, capacities, and liabilities.

Indoor Management Rule

A legal principle that protects third parties who enter into contracts with a company, assuming the company's internal rules and procedures have been followed.

Shareholders' Resolution

A formal decision or expression of opinion passed by the shareholders of a company, often related to its management or policies.